India-Vietnam Enhance Comprehensive Strategic Partnership

India and Vietnam have announced a new plan to strengthen their 'comprehensive strategic partnership' over the next five years.

1. This initiative was discussed during a bilateral meeting between the Indian Prime Minister and the Vietnamese Prime Minister Pham Minh Chinh in New Delhi.
2. The agreement focuses on enhancing cooperation in various sectors, including trade, digital payments, and defense.

Key Highlights of the Bilateral Meeting:

1. New Plan of Action (2024-2028): India and Vietnam agreed on a new plan to strengthen their comprehensive strategic partnership, established in 2016. The plan aims to enhance bilateral trade, economic cooperation, technology development, and defense and security partnerships over the next five years.
2. Digital Payment Connectivity: The central banks of both countries reached an agreement to establish digital payment connectivity. This will enhance financial transactions between India and Vietnam. Both countries are embracing digital payments, with Vietnam developing cross-border payment connectivity with other ASEAN countries.
3. Credit Line Extension: India will extend a USD 300 million credit line to Vietnam to support its military security and development projects. This includes the inauguration of an Army Software Park in Nayachang, funded by an Indian grant, and increased cooperation on terrorism and cybersecurity.
4. Memorandums of Understanding (MoUs) Signed: Six MoUs were signed, covering various areas such as agricultural research, customs capacity building, law and justice, radio and television, and traditional medicines.
5. Trade and Economic Goals: Vietnam proposed raising annual bilateral trade to USD 20 billion from the current USD 14.8 billion. Both countries agreed to expedite the review of the ASEAN-India Trade in Goods Agreement to enhance trade. Vietnam welcomed Indian investments in IT, manufacturing, textiles, semiconductors, and renewable energy.
6. Strategic Alignment: Both countries committed to strengthening cooperation in the Indo-Pacific region, focusing on maintaining freedom of navigation and overflight in the South China Sea. They emphasized the peaceful settlement of disputes based on international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS) of 1982.
7. Economic Diplomacy Dialogue: A new economic diplomacy dialogue will be established at the deputy foreign minister level to address trade and investment issues.
8. Key Facts About Vietnam:
   1. Capital: Hanoi
   2. Official Language: Vietnamese
   3. Major Mountain Range: Annam Cordillera
   4. Major Rivers: Mekong River (south) and Red River (north), which form fertile deltas supporting the majority of the population and agriculture.
   5. Notable Wildlife: Giant catfish, Indochinese tigers, Saola antelopes, and Sumatran rhinos.
   6. Deforestation: Forest cover has been reduced to about 19%; government replanting efforts are underway to restore woodlands.
   7. Government Structure: Socialist state governed by the Communist Party of Vietnam; a president serves as head of state, while a prime minister runs the government.
   8. Economy: Main exports include crude oil, seafood, rice, shoes, wooden products, machinery, electronics, coffee, and clothing.

India-Vietnam Relations:

1. Historical Ties and Diplomatic Relations: India and Vietnam share a Comprehensive Strategic Partnership. Mahatma Gandhi and President Ho Chi Minh exchanged messages during their independence struggles. India established diplomatic relations with Vietnam in 1972, and relations were elevated to a Comprehensive Strategic Partnership in 2016. The development of India-Vietnam relations is guided by a "Joint Vision for Peace, Prosperity and People" adopted in 2020. In 2022, the two countries celebrated the 50th anniversary of the establishment of diplomatic relations.

2. Institutional Mechanisms: The 18th Joint Commission Meeting (JCM) on Economic, Trade, Scientific, and Technological Cooperation was held on 16th October 2023 in Hanoi. Previous JCM meetings, Foreign Office Consultations, and Strategic Dialogues at Secretary-level help review bilateral cooperation.

3. Trade, Economic, and Development Cooperation:

   1. Trade Statistics: India-Vietnam trade from April 2023 to March 2024 was USD 14.82 billion. India's exports to Vietnam were USD 5.47 billion, and imports were USD 9.35 billion.
   2. Key Exports and Imports: India exports engineering goods, agricultural products, chemicals, pharmaceuticals, electronic goods, minerals, textiles, and plastics to Vietnam. Imports from Vietnam include computer and electronic goods, mobile phones, machinery, steel, chemicals, footwear, garments, and wooden products.
   3. Investments:

1. Indian investments in Vietnam are around USD 2 billion, including energy, mineral processing, agro-processing, IT, auto components, pharmaceuticals, hospitality, and infrastructure sectors.
2. Vietnam's investments in India are about USD 28.55 million, primarily in consumer goods, electronics, construction, IT, and pharmaceuticals.
   4. Development Partnership:
      1. Under the Mekong-Ganga Cooperation framework, India has completed about 45 Quick Impact Projects in over 35 provinces of Vietnam, with another 10 projects at the implementation stage.
      2. The Mekong-Ganga Cooperation (MGC), established in 2000, includes six member countries: Cambodia, Lao PDR, Myanmar, Thailand, Vietnam, and India.
      3. The cooperation focuses on key sectors such as tourism, culture, education, information technology, telecommunications, and transport.
      4. India has supported the conservation and restoration of the UNESCO World Heritage site of 'My Son' in Quang Nam Province, Central Vietnam.
      5. The Archaeological Survey of India completed the conservation and restoration of A, H, and K group of temples at the My Son complex site in 2022.

   5. Defense Cooperation:

      1. India and Vietnam have strong defense and security cooperation, with a 2009 MoU on Defense Cooperation and a 2015 Joint Vision on Defense Cooperation providing the framework.
      2. In 2022, the two countries signed a new "Joint Vision Statement on India-Vietnam Defense Partnership towards 2030" and a "Memorandum of Understanding on Mutual Logistics Support."
      3. In 2023, Vietnam was gifted an indigenously built missile corvette INS Kirpan.
      4. Bilateral military-to-military cooperation includes staff talks, exercises, training, visits, and exchanges, such as the VINBAX-2023 Military Exercise.
      5. In February 2024, a Vietnamese navy ship participated in the MILAN international maritime exercise in India.
   6. Cultural Exchanges:

1. MoUs between Indian and Vietnamese institutions promote academic and cultural exchanges.
2. Conferences and summits like the Northeast India Festival in Ho Chi Minh City foster bilateral cultural ties.
3. Buddhist links between Vietnam and India represent ancient civilizational connections. Vietnamese Buddhist scholars and pilgrims regularly travel to India, including to the Vietnamese Buddhist pagoda in Bodhgaya.
4. Yoga is immensely popular across Vietnam, with hundreds of yoga clubs and numerous Indian yoga teachers offering their services.
5. The Swami Vivekananda Indian Cultural Centre in Hanoi promotes further understanding of India and fosters closer links between the two countries through various cultural programs and activities.

Conclusion:

New plan of action for the comprehensive strategic partnership aims to strengthen bilateral trade, economic cooperation, technology development, and defense and security partnerships over the next five years. Both countries are committed to maintaining freedom of navigation and overflight in the South China Sea and emphasizing the peaceful settlement of disputes based on international law. As both countries celebrate the 50th anniversary of the establishment of diplomatic relations, they continue to work together actively to further strengthen their multi-dimensional cooperation.

 

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