Focus on trade and defence, India & Vietnam upgrade ties, reaffirm commitment to freedom of navigation, target $ 25 billion trade

NEW DELHI: India and Vietnam upgraded their relations to an enhanced comprehensive strategic partnership - with focus on boosting cooperation in trade, defence, connectivity and technology - as PM Narendra Modi hosted visiting president To Lam for bilateral talks. The two countries signed over a dozen MoUs, including one for cooperation in rare earths that indicated the importance they attach to supply chain resilience and diversification amid Chinese monopoly on the industry

Against the backdrop of concerns over Chinese activities in South China Sea, both leaders reaffirmed commitment to freedom of navigation and overflight in the region, seeking peaceful resolution of disputes in line with international law, particularly the 1982 UNCLOS.

Modi said India and Vietnam have a common outlook in the Indo-Pacific and will continue to contribute to rule of law, peace, stability and prosperity through their deepening security and defence cooperation. Hanoi’s cautious and layered approach to China saw the Communist Party chief, who was elected president last month, visiting Beijing days after assuming office to cement bilateral ties, notwithstanding concerns about China’s expansive South China Sea claims.

The PM also said in a media statement that both sides had taken several important decisions to facilitate $ 25 billion annual trade by 2030, citing an MoU between drug authorities that is expected to improve access for Indian medicines in Vietnam.

The PM also said that both sides had also agreed that the ASEAN India Trade in Goods Agreement (AITIGA) should be updated by the end of the year. “This will provide a new impetus to trade and investment between India and all ASEAN countries. Through new initiatives in critical minerals, rare earths, and energy cooperation, we will ensure the economic security and supply chain resilience of both countries,” he said, while also thanking the president for strongly condemning the Pahalgam terrorist attack and standing with India in the fight against terrorism.

According to a joint statement, the leaders unequivocally condemned terrorism in all its forms and manifestations, including cross-border terrorism. “The leaders called for disrupting of terror financing networks and safe havens, dismantling of terror infrastructure and bringing perpetrators of terrorism to justice swiftly,” it said.

With India committed to enhancing Vietnam’s defence capabilities, the leaders also decided to enhance defence systems procurement between the two countries. Asked about the supply of supersonic cruise missile BrahMos to Vietnam, MEA secretary (east) P Kumaran said that both countries are talking about a number of platforms and the BrahMos is also one of them.

The official also said that the PM offered maintenance, repair and overhaul (MRO) support for platforms that Vietnam has, like the Sukhoi 30 and the Kilo-class submarines. The Vietnam president said elevating the defence and security partnership to a strategic pillar of the relationship will ensure an environment of peace and stability.

India also thanked Vietnam for the latter’s invitation to play a role in the country’s nuclear power sector. Reaffirming their commitment to multilateralism, according to the joint statement, the leaders expressed strong support for reforms of international organizations, including the UNSC, to make them more representative and reflective of contemporary realities. “Prime Minister Modi appreciated Vietnam’s continued support for India’s permanent membership in a reformed UNSC,” it said.

The 2 countries also signed an MoU for cooperation in digital technologies. Modi described Vietnam as one of the main pillars of India’s Act East Policy.

“In this era of global turmoil and economic challenges, driven by our talent, good governance, and economic reforms, India and Vietnam are emerging as the world's fastest-growing economies. Now, through our enhanced strategic partnership, we will support each other's rapid growth,” said the PM.

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