Vision Statement on India-Vietnam Defence Partnership: Key Facts
On 8th June 2022, a joint vision statement, as well as a military logistic support pact, was signed between India and Vietnam. Both pacts will be enhancing the existing defence cooperation between both nations.
Why was this pact signed?
This pact was signed with the aim of enhancing the scope of defence cooperation between both countries so as to secure strategic interests in the Indo-Pacific region, that China is seeking to dominate. Bilateral talks were held between Defence minister of Vietnam General Phan Van Giang and Indian Defence minister Rajnath Singh in Hanoi. The meeting between both ministers was scheduled in light of the 50th diplomatic anniversary of India and Vietnam.
What was discussed during the talks?
- The “Joint Vision Statement on India-Vietnam Defence Partnership towards 2030” was signed by ministers of both nations.
- The ministers also signed an MoU on Mutual Logistics Support.
- India also agreed to the early finalisation of a Defence Line of Credit to Vietnam worth USD 500 million. This line of credit will help implement projects that will boost the defence capabilities of Vietnam and will also enhance India’s ‘Make in India, Make for the World’ vision.
- A wide range of discussions were also held by both leaders on the effective and practical ways to expand bilateral defence engagements between both nations.
- Discussions regarding global and regional issues were also held between the two sides.
- Rajnath Singh also announced that India will be gifting two simulators as well as a monetary grant will be provided to set up an IT and language lab at Air Force Officers Training School so that the capacity building of the Vietnamese Armed Forces can be enhanced.
- India has also agreed to continue supporting Vietnam with developmental and capacity-building assistance, through several programs including projects like the Indian Technical and Economic Cooperation (ITEC), digital connectivity, Mekong-Ganga Project, and PhD fellowships.
- Both nations also agreed to provide an infrastructure and connectivity boost, besides promoting people-to-people ties and tourism.
How are the trade relations between India and Vietnam?
Both nations share commercial and trade ties. Bilateral trade between both has increased to USD 14.14 billion in 2021-2022 from USD 200 million in 2000. In the financial year 2021-22, it increased by 27 percent. The exports of India to Vietnam also increased by 34 percent, and the imports to India from Vietnam also increased by 21 percent.