India is strengthening its relationship with Vietnam by lending the country a substantial $300 million to improve Vietnam’s marine security. This move highlights the deepening relationship between the two countries and their commitment to increasing trade and investment.
Key Developments in Bilateral Partnership
On Thursday, Indian Prime Minister Narendra Modi and Vietnamese Prime Minister Pham Minh Chinh met to discuss their growing collaboration. Modi underlined that Vietnam is an important partner in the Indo-Pacific area and a key component of India’s Southeast Asian policy.
Chinh echoed this sentiment, stressing the importance of working together amidst global security challenges. He noted that while the Indo-Pacific region is a hub of economic growth, it is also a hotspot for political activity. Both leaders agreed on the need for a global approach and strong multilateral cooperation.
Expanding Cooperation
The two leaders outlined several areas for increased cooperation. They plan to focus on defense, as well as emerging technologies such as semiconductor production, green technology, artificial intelligence, cloud computing, and climate action.
One of the highlights of their discussions was the virtual inauguration of the “Army Software Park” in Vietnam. This educational facility, supported by India, aims to train Vietnamese soldiers in digital skills, enhancing their capabilities in the modern era.
Growing Trade and Investment
Trade between India and Vietnam has been growing steadily. In 2022, bilateral trade surged by 27%, reaching $14.14 billion. Indian exports to Vietnam amounted to $6.7 billion, while imports from Vietnam totaled $7.44 billion.
India exports a diverse range of goods to Vietnam. These include iron and steel, cotton, cereals, meat, fishery products, electrical machinery, automobile parts, cement, chemicals, and pharmaceuticals. On the other hand, India imports electrical and electronic equipment, inorganic chemicals, machinery, copper, rubber, coffee, tea, spices, and iron and steel from Vietnam.
Investment Figures
India has made significant investments in Vietnam, totaling around $1.9 billion. These investments span various sectors, including energy, mineral exploration, agriculture, and information technology.
Vietnam, too, has invested in India, with contributions exceeding $28.55 million. Vietnamese investments are primarily in pharmaceuticals, information technology, chemicals, and building materials.
Looking Ahead
The recent developments between India and Vietnam’s signal a promising future for their partnership. With the $300 million loan and a shared vision for expanding trade and cooperation, both nations are set to strengthen their economic and strategic ties. The focus on cutting-edge technologies and defense collaboration underlines their commitment to facing global challenges together while driving mutual growth and prosperity.
This enhanced cooperation marks a new chapter in the relationship between India and Vietnam, highlighting their dedication to building a robust and dynamic partnership.