Background: India supported Vietnam's independence from France, objected to the US involvement in Vietnam in the 1960s and was one of the first countries to recognise a united Vietnam in 1975 after the war with the US.
Strategic Partnership: Bilateral relations between the two countries were elevated to a ‘Strategic Partnership’ in 2007 and a “Comprehensive Strategic Partnership” in 2016.
- Their current cooperation is guided by the Joint Vision for Peace, Prosperity and People 2020.
Economic Cooperation: Bilateral trade stood at US$ 14.82 billion in 2023-2024.
- Vietnam is India’s 23rd-largest global trade partner and 5th largest among ASEAN countries.
Defence Cooperation: Defence cooperation is multi-faceted and includes defence dialogues, training, exercises (PASSEX, VINBAX, and MILAN), collaboration in capacity building and Navy and Coast Guard ship visits.
- In 2022, both countries signed a Joint Vision Statement on Defence Partnership towards 2030 and a Memorandum of Understanding on Mutual Logistics Support.
Integration to supply chains: Partnership with Vietnam can help India participate in building reliable, efficient and resilient regional and global supply chains.
- Vietnam’s Free trade agreement with European Union has further enhanced its role in the global trade regime.
Cultural: India and Vietnam share over 2,000 years of cultural and civilizational ties, with a strong connection through their shared Buddhist heritage.

Significance of Vietnam for India

Geostrategic location: Vietnam’s position in the Indo-Pacific is crucial for maintaining secure and stable trade routes.
Countering China: India opposes China’s claim in Ladakh and Arunachal Pradesh while Vietnam has differences over Chinese claims over the Paracel and the Spratly Islands in the South China Sea (SCS).
- Vietnam remains one of the most strident voices in Southeast Asia against China’s unilateral actions in the SCS.
Energy security: Indian companies have invested in oil and gas exploration projects in the Vietnamese waters in the South China Sea which are extremely rich in hydrocarbon reserves.
- A consistent supply of hydrocarbons from Vietnam can help ensure energy security in India.
Act East Policy: Vietnam is a core partner of India in ASEAN and a critical partner in India’s Act East policy and the Indo-Pacific vision.
Support for India on international platforms: Vietnam strongly supports India's permanent membership in an expanded UN Security Council.

Challenges in India-Vietnam relations

Balancing China: Vietnam, like other neighbors, is cautious of provoking of China, leading to reluctance in deepening military ties with India.
- Chinese claims over the South China Sea can threaten India’s prospects of exploring hydrocarbons in the region.
Modest trade: Despite growth in trade with India, overall it remains modest compared to Vietnam's trade with China (around $100 billion); and the U.S. ($142 billion).
Trade routing from China: Economic Survey 2023-24 noted that the rise in trade through countries such as Mexico and Vietnam are a result of Chinese firms re-routing their supply through these countries.
Reluctance in Military Deals: Despite India's line of credit for military purchases, Vietnam has been hesitant to use it fully, and has resisted buying the Akash surface-to-air missile.
Cultural gap: There is a significant cultural, custom and language gap between people from both countries.

Initiatives taken by India to strengthen relations with Vietnam

Mekong-Ganga Cooperation (MGC): An initiative by India and five ASEAN countries, (Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam) for cooperation in tourism, culture, education, as well as transport and communications.
Quick Impact Projects: It is being undertaken by India in various provinces of Vietnam under MGC framework
India provides training, capacity building and educational courses in Indian for Vietnamese nationals.
India handed over an indigenously built missile corvette INS KIRPAN to Vietnam in 2023.

Way ahead

Enhancing economic cooperation: Promoting joint ventures, enhancing physical and digital connectivity, encouraging e-commerce, upgrading regional trading architecture and mutually providing greater market access etc.
Bridging Connectivity Gap: The India-Myanmar-Thailand trilateral highway could link up with already existing roads like the one linking Thailand with the Vietnamese port of Da Nang.
Deepening Cultural cooperation: People-to-people exchanges need to be further strengthened, as there is significant goodwill that the two states can leverage.
Realising converging interests: India and Vietnam geographically lie at the centre of the Indo-Pacific region.
- Both countries would play a major role in this strategic space which is becoming a core theatre of competition for power and influence amongst the major powers.