India & Vietnam Relation

GS Paper II

News Excerpt:

Recently, India and Vietnam firmed up an action plan to expand their strategic ties.

Key Points:

  • India asserts that both sides will work towards a free and rules-based Indo-Pacific and that New Delhi supports development and not “expansionism”.
    • This stance could be an indirect message to China which has laid claim to most of the South China Sea region.

Expanding Cooperation in Various Sectors

  • The meeting underscored the desire to expand cooperation beyond defence, delving into areas such as semiconductor and green technology, artificial intelligence, cloud computing, and climate action. 
  • The inauguration of the “Army Software Park” in Vietnam, facilitated by India’s support, stands as a testament to this commitment. 
    • This educational facility, located at the Tele-Communications University in Nha Trang, will equip Vietnamese soldiers with vital digital skills, enhancing their capabilities in an increasingly digital world.

Strategic Agreements and MoUs:

The visit also saw the signing of multiple Memorandums of Understanding (MoUs), further solidifying the bilateral ties between India and Vietnam. These agreements cover a broad spectrum of sectors:

  • Comprehensive Strategic Partnership (2024-2028): An MoU was exchanged by Vietnam’s Foreign Minister and India’s External Affairs Minister to advance the partnership between the two countries.
  • Customs Capacity Building: An agreement between the Central Board of Indirect Taxes and Customs (CBIC) of India and the General Department of Vietnam Customs was signed, aiming to enhance cooperation in customs.
  • Agricultural Collaboration: The Central Agricultural University in Imphal, Manipur, and the Vietnam Academy of Agricultural Sciences in Hanoi inked an MoU to collaborate on agriculture, research, and education.
  • Legal Cooperation: An MoU between the Ministry of Law and Justice of India and Vietnam’s Ministry of Justice was signed to foster cooperation in the legal field.
  • Media Cooperation: Prasar Bharati and the Voice of Vietnam signed an agreement to collaborate on radio and television content.
  • Credit Line Agreements: Two credit line agreements, each worth USD 120 million, were exchanged between the Vietnamese Ministry of Finance and the Export-Import Bank of India, supporting various projects in Vietnam.
  • Cultural Conservation: A letter of intent was exchanged for the restoration and conservation of the My Son UNESCO World Heritage site, highlighting the cultural ties between the two nations.   

Relation Between India and Vietnam:

  • Various dimensions of India-Vietnam relations have both expanded and deepened in the last one decade. 
  • In the last 10 years, they have transformed their relations into a comprehensive strategic partnership.
  • Buddhism is a shared heritage, which has connected the people of both countries at a spiritual level. India invites people from Vietnam to the Buddhist circuit in India and wants the youth of Vietnam to also take advantage of Nalanda University.
  • In the defence sector, India and Vietnam have a history of cooperation, with India providing training and capacity-building support to the Vietnamese military. 
    • The two countries are looking to deepen this cooperation further, with discussions on joint exercises, equipment procurement, and technology transfers. 
    • This partnership is essential for maintaining regional peace and security, particularly in the context of rising tensions in the South China Sea. 

Robust Trade Relations

  • Bilateral trade between India and Vietnam has seen substantial growth, with trade volumes increasing by 27 percent in 2022, reaching USD 14.14 billion. 
  • India’s exports to Vietnam include iron and steel, cotton, cereals, meat and fishery products, electrical machinery, automobile parts, cement, chemicals, and pharmaceuticals. 
  • Meanwhile, Vietnam’s exports to India primarily consist of electrical and electronic equipment, inorganic chemicals, machinery, copper, rubber, coffee, tea, spices, iron, and steel. 
  • India’s investments in Vietnam are estimated at around USD 1.9 billion, spanning energy, mineral exploration, agriculture, and information technology. 
  • In contrast, Vietnam has invested over USD 28.55 million in India, focusing on pharmaceuticals, information technology, chemicals, and building materials.

Other Relations:

  • India-Vietnam Relations Overview: India and Vietnam, both deeply rooted in their struggles for independence, maintain a historically close and cordial relationship. Mahatma Gandhi and President Ho Chi Minh, revered as the Fathers of the Nation in India and Vietnam respectively, led their countries' heroic battles against colonialism. India played a significant role in the Vietnam peace process as Chairman of the International Commission for Supervision and Control, established under the Geneva Accord of 1954. Initially, India had consular relations with North and South Vietnam before establishing full diplomatic ties with unified Vietnam on January 7, 1972.
  • Bilateral Relations: The relationship between India and Vietnam reached the level of 'Strategic Partnership' during Vietnamese Prime Minister Nguyen Tan Dung’s visit to India in July 2007. It was further elevated to a “Comprehensive Strategic Partnership” during Indian Prime Minister Narendra Modi’s visit to Vietnam in 2016. The partnership is currently guided by the "Joint Vision for Peace, Prosperity and People," adopted during a virtual summit on December 21, 2020, which also included the signing of a Plan of Action for 2021-2023. The year 2022 marked the 50th anniversary of diplomatic relations and the 75th anniversary of India’s independence.
  • Investments: India’s investments in Vietnam are around US$ 1.9 billion, with projects primarily in energy, minerals, and IT. Vietnam’s investments in India, estimated at US$ 28.55 million, focus on pharmaceuticals, IT, and chemicals.
  • Development Partnership: India's development partnership with Vietnam involves Quick Impact Projects (QIPs) under the Mekong Ganga Cooperation framework. As of December 2020, India completed seven grant-in-aid projects and provided technical assistance for the conservation of the My Son heritage site.
  • Defence Partnership: Defence cooperation is a cornerstone of the strategic partnership, with a Memorandum of Understanding signed in 2009 and a new Joint Vision Statement for 2030 established in June 2022. Key activities include military exchanges, training programs, and collaborations in UN peacekeeping operations. India has also provided high-speed guard boats to Vietnam and engages in joint naval exercises.
  • Cultural and Academic Cooperation: The Swami Vivekananda Indian Cultural Centre in Hanoi promotes cultural exchange through various programs. Educational exchanges are facilitated by the Indian Technical and Economic Cooperation (ITEC) program and scholarships offered by the Indian Council of Cultural Relations.
  • Tourism and People Exchanges: Post-Covid-19, tourism and people-to-people exchanges have resumed with direct flights and a simplified visa regime. Celebrations of Mahatma Gandhi’s 150th anniversary and the International Day of Yoga are prominent events, with yoga being popular in Vietnam.
  • Indian Community in Vietnam: Approximately 6,000 Indians live in Vietnam, primarily in Ho Chi Minh City. They are involved in sectors like IT, hospitality, and education, with Indian businesses such as ONGC Videsh Limited and Hindustan Computers Limited having a presence in Vietnam.

Vietnamese Prime minister’s Stance:

  • He expressed gratitude towards the Indian leader for extending his condolences on former Communist Party General Secretary Nguyen Phu Trong's death and sending National Security Adviser for his funeral. 
  • He also lauded India's important role during the Covid-19 pandemic in the distribution of vaccines, as Vietnam imported a large quantity of Indian medicines.
  • The Vietnamese Prime Minister also extended an invitation to the Indian Prime Minister to visit Vietnam, saying the strategic partnership between the two countries has reached a new period.

Conclusion:

In conclusion, the meeting between Indian Prime Ministers and Vietnamese PM marks a significant step in advancing the India-Vietnam relationship. By focusing on trade, maritime security, and defence, the two nations are poised to strengthen their partnership, contributing to regional stability and prosperity. The comprehensive strategic partnership continues to evolve, reflecting the shared interests and common goals of both countries in an increasingly complex global landscape.

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