India and Vietnam on Wednesday elevated their bilateral relationship to an “Enhanced Comprehensive Strategic Partnership” following high-level talks between Prime Minister Narendra Modi and Vietnamese President To Lam in New Delhi.
The visit marked one of the most significant upgrades in India-Vietnam relations in recent years, with both countries signing multiple agreements and Memorandums of Understanding across defence, digital payments, rare earths, healthcare, tourism and strategic technologies.
The two sides also announced an ambitious target to raise bilateral trade to $25 billion by 2030 while strengthening cooperation in the Indo-Pacific region amid growing geopolitical competition in Asia.
Strategic Partnership Upgraded
During the joint press statements, Prime Minister Modi said India and Vietnam would work closely in critical sectors including supply chains, energy security and emerging technologies.
The upgraded partnership reflects growing convergence between the two countries on regional security, maritime cooperation and economic diversification.
India described Vietnam as a key pillar of its Indo-Pacific strategy, while Vietnam highlighted India’s increasing role in maintaining regional stability and balancing supply chains away from excessive dependence on any single country.
Trade Target Raised to $25 Billion
One of the biggest announcements from the summit was the decision to raise bilateral trade to $25 billion by 2030.
Bilateral trade between the two countries crossed $16 billion in recent years, making Vietnam one of India’s fastest-growing trade partners in Southeast Asia.
India currently exports pharmaceuticals, machinery, auto components, chemicals, agricultural products and metals to Vietnam, while importing electronics, telecom equipment, textiles, footwear, coffee and industrial goods from Vietnam.
Both sides agreed to expand cooperation in semiconductors, electronics manufacturing, electric vehicles, renewable energy, logistics, healthcare, tourism and the digital economy. Officials also discussed improving connectivity between Indian and Vietnamese businesses and reducing barriers in trade and investment flows.
Both countries also discussed strengthening semiconductor and electronics supply chains as global manufacturers increasingly diversify production networks beyond China. Officials said India and Vietnam could emerge as complementary manufacturing hubs in sectors such as electronics, critical minerals and advanced technologies.
Rare Earths and Critical Minerals Become Major Focus
A major strategic outcome of the visit was the signing of an agreement on rare earths and critical minerals.
India’s IREL Limited signed an MoU with Vietnam’s Institute for Technology of Radioactive and Rare Elements to strengthen cooperation in:
- rare earth exploration
- mineral processing
- advanced materials
- supply chain resilience
The agreement reflects broader global efforts to diversify rare earth and critical mineral supply chains.
Prime Minister Modi said cooperation in critical minerals and energy would help improve economic security for both nations.
Defence Cooperation and BrahMos Discussions
Defence remained one of the central pillars of the talks.
India and Vietnam discussed expanding naval cooperation, military training, defence technology sharing, maritime surveillance, cybersecurity and defence manufacturing cooperation.
Sources cited by Reuters said discussions also included the possible sale of BrahMos supersonic cruise missiles to Vietnam. Reuters reported that the proposed deal could be worth around $629 million and may include training and logistical support.
Although no formal BrahMos agreement was signed during the visit, officials indicated that defence cooperation announcements could follow in the coming months.
The discussions come after India successfully exported BrahMos systems to the Philippines and signed a similar agreement with Indonesia earlier this year.
India has steadily expanded military cooperation with Vietnam over the last decade through annual defence dialogues, naval exercises and military training programs.
In 2023, India gifted the indigenously built missile corvette INS Kirpan to Vietnam as part of growing maritime cooperation.
Digital Payments and UPI Expansion
India and Vietnam also signed key agreements in digital finance and payment systems.
The Reserve Bank of India and the State Bank of Vietnam signed an MoU to strengthen cooperation in financial innovation and payment infrastructure.
Separately, NPCI International partnered with Vietnam’s National Payment Corporation to explore QR code interoperability and cross-border digital transactions. The agreement aims to improve cross-border digital payment interoperability between the two countries.
The move also supports India’s broader effort to internationalise the UPI ecosystem across Asia and other global markets.
Healthcare and Pharmaceutical Cooperation
Healthcare and pharmaceuticals emerged as another important area of cooperation.
India’s Central Drugs Standard Control Organisation signed an agreement with Vietnam’s Drug Administration to improve collaboration in pharmaceutical regulation, medical devices, healthcare digitisation, regulatory approvals and AI-based healthcare systems.
Officials also discussed broader healthcare cooperation and capacity building in medical research and biotechnology.
Focus on Emerging Technologies
Both sides discussed cooperation in:
- artificial intelligence
- 6G technology
- semiconductor supply chains
- biotechnology
- space technology
- atomic energy
- marine sciences
Both sides expressed interest in expanding cooperation in energy and emerging technologies.
The discussions reflected increasing alignment between the two countries in building resilient and diversified technology ecosystems in Asia.
Maritime Security and Indo-Pacific Cooperation
India and Vietnam reaffirmed their commitment to a free, open and rules-based Indo-Pacific region.
The two countries supported freedom of navigation, respect for international law, peaceful resolution of disputes, maritime security cooperation and adherence to UNCLOS.
Both countries agreed to deepen cooperation in the Indo-Pacific under regional maritime initiatives.
The growing strategic coordination between the two countries is being closely watched amid rising tensions in the South China Sea and increasing Chinese influence in the region.
Tourism, Culture and Buddhist Connectivity
Several agreements were also signed in tourism and cultural exchange.
The two sides announced a Cultural Exchange Programme for 2026–2030 along with tourism cooperation initiatives, educational partnerships and academic exchanges.
Both leaders highlighted the civilisational and Buddhist links between the two countries and welcomed growing tourism flows.
Growing Economic and Strategic Convergence
The India-Vietnam summit highlighted how the relationship is evolving beyond traditional diplomacy into a broader strategic and economic partnership.
From defence exports and rare earths to digital payments and semiconductor cooperation, both countries are increasingly positioning themselves as long-term partners in the Indo-Pacific.
The discussions and agreements are expected to deepen cooperation in manufacturing, trade, strategic technologies and regional security over the coming decade.
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