Vietnam is eager to strengthen its historical ties with India and expand economic cooperation. Vietnamese Prime Minister Pham Minh Chinh was the second global leader to visit India following PM Narendra Modi’s third term, highlighting India’s importance in Vietnam’s foreign policy.
H.E. Nguyen Thanh Hai, Ambassador of Vietnam to India, announced at a WTC Mumbai event that Vietnam has proposed a comprehensive economic partnership agreement with India, extending beyond trade to investment, services, finance, intellectual property, and mobility. The Vietnamese Commerce Ministry sent a proposal last year, awaiting India’s response. Both nations are also working to open markets for agro products and establish an alternative cross-border payment system.
Vietnam’s economy grew 7% last year and is expected to hit 8% this year. The government is implementing reforms to cut bureaucracy, reduce ministries from 19 to 14, and streamline governance. Vietnam seeks India’s collaboration to achieve double-digit growth.
Key Developments in Bilateral Ties:
Investment: EV maker VinFast to invest $2 billion in India; more Vietnamese firms from tech, petrochemicals, airlines, and electronics set to enter the Indian market.
Tourism Boom: Indian tourist arrivals to Vietnam grew 26% annually, expected to reach 1 million soon. Weekly flights have surged from 6 (pre-COVID) to 74, with plans for 82 next year.
Trade Growth Potential: Current bilateral trade of $15 billion can exceed $20 billion with targeted sectoral collaboration and trade delegations.
Tech & Startup Cooperation: India-Vietnam Startup Week set for April 2 in Delhi to enhance technology ties.
Cultural & Strategic Links: Vietnam sees India as a key partner in green revolution strategies, entertainment, and independence movements.
Future Roadmap:
India and Vietnam should complement rather than compete, suggested Dr. Vijay Kalantri, Chairman, WTC Mumbai, proposing dedicated SEZs and Smart Cities to attract Vietnamese investment. He also emphasized tourism collaboration, including spiritual tourism to Hindu temples and Vietnam as an Indian wedding destination.
With strengthening diplomatic and economic ties, Vietnam and India are poised for a new era of trade and investment growth.
