India and Vietnam Elevate Ties to “Enhanced Comprehensive Strategic Partnership”

NEW DELHI – In a landmark move to fortify regional stability and economic resilience, India and Vietnam on Wednesday elevated their bilateral relationship to an “Enhanced Comprehensive Strategic Partnership.” The decision followed extensive talks between Prime Minister Narendra Modi and Vietnamese President To Lam at Hyderabad House, marking a new era in the decades-old bond between the two nations.

Prime Minister Modi emphasized that the partnership is a cornerstone of India’s Act East Policy and Vision MAHASAGAR, clarifying that the collaboration is focused on mutual prosperity and a rules-based order rather than targeting any third country.

Economic Roadmap: Targeting $25 Billion by 2030

A central outcome of the summit was the setting of an ambitious trade target. With current bilateral trade standing at $16 billion, both leaders committed to scaling this to $25 billion by 2030.

Key Economic Drivers:

• Market Access: New agreements will facilitate smoother exports of Indian pharmaceuticals, agricultural products, and fisheries to Vietnam.
• ASEAN Integration: Both sides confirmed plans to update the India-ASEAN Free Trade Agreement by the end of 2026.

13 Agreements: Critical Minerals, Digital Payments, and More

The two nations signed a total of 13 Memoranda of Understanding (MoUs), reflecting a diversified and future-oriented cooperation strategy:

• Critical Minerals: An MoU between India’s IREL and Vietnam’s ITRRE to collaborate on rare earth elements and radioactive minerals, aiming to build resilient supply chains.
• Digital Finance: A partnership between the Reserve Bank of India (RBI) and the State Bank of Vietnam to link India’s UPI with Vietnam’s fast payment systems, facilitating easier cross-border transactions for tourists and businesses.
• Healthcare: Collaboration between the CDSCO and Vietnam’s Drug Administration to improve pharmaceutical regulation and access to affordable medicines.
• Cultural & Academic Exchange: MoUs involving Nalanda University for academic collaboration and a new Cultural Exchange Programme for 2026–2030.

Defense: A Strategic Pillar

Defense remains a primary focus of the relationship. Earlier on Wednesday, Defense Minister Rajnath Singh met with Vietnam’s Deputy PM and Defense Minister, Phan Van Giang.

“We will elevate defence and security cooperation to become a strategic pillar to contribute to strengthening an environment of peace and stability,” President To Lam stated during his visit.

The leaders reviewed the implementation of Lines of Credit (LoC) extended by India, which have significantly bolstered Vietnam’s defense capabilities. Future cooperation will focus on maritime security, joint research, and the co-production of defense equipment.

“Shared Vision, Strategic Convergence”

Delivering a policy speech at the Indian Council of World Affairs (ICWA), President To Lam recalled the historical support India provided during Vietnam’s struggle for independence. He specifically noted that Jawaharlal Nehru was the first foreign leader to visit Hanoi in 1954, just a week after its liberation.

The visit, which began with President Lam’s spiritual stop in Gaya to meditate under the Bodhi Tree, concluded with a joint commitment to freedom of navigation and the peaceful resolution of disputes in the Indo-Pacific.