In a recent and significant development, India and Vietnam have agreed to strengthen their partnership through signing a Letter of Intent (LOI). This document records the initial commitment of both parties as they progress into a business deal. The main points of this potential deal are outlined within it.
Scope and Objectives: Digital Media Collaboration
This LOI specifically aims to enhance cooperation in digital media between the two nations. It promotes the sharing of information and experience, as well as collaboration in implementing projects related to human resource development. It also fosters improved cooperation among postal service providers and operators in both countries. Furthermore, it paves the way for mutual support in new technologies and tackling common challenges, such as the ‘infodemic’ occurring during the COVID-19 pandemic.
5G Network Development and Future Prospects
Vietnam expressed its appreciation for India’s efforts in developing an indigenous 5G network under the “AtmaNirbhar Bharat” initiative. The Vietnamese Minister of Information and Communications also suggested that India should further collaborate in the 5G field to create world-class telecom equipment.
Background: India-Vietnam Relationship
While defence cooperation has been one of the most crucial pillars of the Comprehensive Strategic Partnership formed by the two countries in 2016, the diplomatic relationship between them was established earlier on. India set up the Consul General’s office in Hanoi as early as 1956, with Vietnam following suit in its diplomatic mission in 1972. Additionally, India supported Vietnam against US intervention at the cost of their relations with the US.
Recent Developments: Economic and Trade Cooperation
The economic relations between India and Vietnam have improved significantly over the years, particularly after the ASEAN-India Free Trade Agreement was signed. Amidst political stability and substantial economic growth, Vietnam could potentially become a regional power in Southeast Asia. With this in mind, India has been investing in development and capacity assistance for Vietnam through various projects.
Defence Cooperation: A Key Pillar
The defence relations between India and Vietnam have been of high importance, especially in the modernisation of Vietnam’s armed forces and the development of India’s defence capabilities. Vietnam has shown interest in India’s weaponry, such as the Akash surface-to-air systems, Dhruv advanced light helicopters, and Brahmos missiles. This defence cooperation stands as one of the significant pillars under the Comprehensive Strategic Partnership.
The China Factor in Strategic Calculations
Both India and Vietnam have witnessed China’s territorial encroachments, leading them towards strengthening their strategic alliance. As each country has had border disputes and wars with China, their partnership aims to restrain China’s aggressive actions.
Mutual Cooperation at Various Forums
India and Vietnam have cooperated closely within several regional forums, such as the East Asia Summit, Mekong Ganga Cooperation, and Asia Europe Meeting (ASEM). They have also facilitated simplified visa regimes to promote bilateral tourism, along with celebrating the ASEAN-India Year of Tourism in 2019.
Future Prospects and Implications
The signing of the LOI signifies how India is expanding its presence in the periphery of China. As India and Vietnam lie geographically at the core of the emerging Indo-Pacific construct, both nations will play a significant role in this strategic space. Their partnership will also be critical in carrying out India’s ‘Act East’ Policy for inclusive growth in the region. Ultimately, strengthening ties with Vietnam will lead a step towards the implementation of the SAGAR (Security and Growth for all in the Region) initiative.
