In a move to further strengthen India-Vietnam ties, Kirti Vardhan Singh, Minister of State for External Affairs and Environment, Forest & Climate Change, visited Vietnam from February 24-27, 2025. His timely visit comes at a time when both India and Vietnam are trying to navigate a rather fluid Indo-Pacific strategic dynamics, further complicated by the intensifying US-China rivalry and the Trump administration’s announcement of imposing tariffs on China, Mexico, and Canada. India and Vietnam, among other Indo-Pacific countries, are also likely to face challenges thrown by the Trump administration on the tariff and multilateral trade front.
During his visit, Minister Singh held a wide range of discussions with Vietnamese leaders on the sidelines of the second ASEAN Future Forum (AFF) in Hanoi on February 25. The importance of AFF lies in the fact that it serves as a critical policy-oriented platform for ASEAN’s formal organisational and policy discussion mechanisms and meetings, encouraging the collaborative involvement of governments, the corporate sector, civil society, businesses, and citizens, thereby attempting to furnish a combined whole-of-government understanding on matters that matter the most to ASEAN and its dialogue partners.
The India-Vietnam relationship, rooted in historical affinities and cultural interactions, has evolved into one of the key security partnerships in the Indo-Pacific. Since establishing a “Comprehensive Strategic Partnership” (CSP) in 2016, bilateral cooperation has expanded across multiple sectors, including defence, trade, and multilateral coordination. During the interaction, Vietnam’s Deputy Prime Minister and Minister of Foreign Affairs Bui Thanh Son underscored the importance of the CSP and its contribution in strengthening the bilateral ties. While the dynamics of this partnership are undoubtedly shaped by shifting geopolitical currents, particularly China’s growing assertiveness and the evolving role of the United States in the region, Delhi-Hanoi ties stand on their time-tested merit.
Strategic Imperatives and Security Challenges
One of the critical drivers of India-Vietnam cooperation is a shared concern over China’s assertive regional posture. Both nations emphasize a rules-based international order, freedom of navigation, and adherence to the United Nations Convention on the Law of the Sea (UNCLOS). The South China Sea remains a flashpoint, with China claiming over 80 per cent of the maritime area under its controversial “Nine-Dash Line.” India, through its Act East Policy, has actively engaged Vietnam in naval cooperation, including maritime domain awareness sharing and joint exercises such as the PASSEX and SIMBEX. While these efforts enhance regional deterrence, they are tempered by the necessity to balance economic and diplomatic relations with Beijing. Furthermore, Vietnam’s military modernization, including its likely procurement of India’s BrahMos supersonic cruise missiles, underscores the increasing strategic depth of the partnership.
Economic Cooperation and Trade Disparities
Economic cooperation, while expanding, remains constrained by structural imbalances. Bilateral trade reached approximately US$15 billion in 2023, with Vietnamese exports accounting for a larger share due to its competitive manufacturing sector. Vietnam’s main exports to India include electrical machinery, mobile phones, and textiles, while India’s primary exports consist of iron and steel, pharmaceuticals, and auto components. This imbalance has prompted India and Vietnam to explore mechanisms to enhance trade parity, including discussions on a bilateral Free Trade Agreement (FTA) to complement the ASEAN-India Free Trade Area (AIFTA). Additionally, India’s investments in Vietnam’s renewable energy, semiconductor manufacturing, and digital infrastructure signal a shift towards high-value economic engagement. However, bureaucratic hurdles, divergent regulatory frameworks, and logistical inefficiencies remain obstacles to seamless trade expansion.
Role of US and ASEAN in Shaping Bilateral Ties
India and Vietnam’s strategic calculations are influenced by the evolving US-China rivalry. The US, under its Indo-Pacific strategy, has designated both nations as crucial partners in maintaining regional equilibrium. In 2023, US-Vietnam trade exceeded US$124 billion, reflecting Washington’s deepening engagement with Hanoi. India, mindful of Vietnam’s growing economic ties with the US, has sought to reinforce its own strategic and economic cooperation with Hanoi. Furthermore, India and Vietnam remain committed to ASEAN centrality, aligning with ASEAN’s Outlook on the Indo-Pacific to ensure an inclusive regional order.
Future Trajectory
Recent high-level diplomatic exchanges have provided renewed momentum to bilateral ties. Vietnamese Prime Minister Pham Minh Chinh’s 2024 visit to India catalyzed discussions on defence, technology, and investment collaboration. Indian External Affairs Minister Dr S. Jaishankar’s visit to Vietnam focused on strengthening economic partnerships and reinforcing India’s developmental assistance in infrastructure and connectivity projects. The 2024-2028 Vietnam-India Comprehensive Strategic Partnership Action Plan aims to double bilateral trade and enhance investment in critical sectors such as rare earth minerals, logistics, high technology, and oil and gas exploration.
Soft Power and Cultural Engagements
Beyond strategic and economic imperatives, cultural diplomacy plays a vital role in strengthening people-to-people ties. India’s cultural footprint in Vietnam, historically rooted in Buddhism and ancient trade exchanges, continues to expand through educational programs, tourism, and academic collaborations. The increasing number of Vietnamese students pursuing higher education in India and the rising popularity of Indian cultural events in Vietnam underscores the deepening societal linkages between the two nations. This aspect was further highlighted during Minister Singh’s visit when the Dau Pagoda – a prominent Buddhist site. Indian Diaspora in Vietnam, albeit small in number, contributes meaningfully to the India-Vietnam ties – an aspect that did not go amiss when the Minister met and addressed the Indian community in Hanoi.
India and Vietnam’s Comprehensive Strategic Partnership is a cornerstone of regional stability in the Indo-Pacific. While geopolitical uncertainties persist, both nations are committed to deepening cooperation in defence, trade, and multilateral forums. As they navigate complex regional dynamics, including ASEAN’s evolving role and US-China strategic competition, their partnership will be crucial in shaping a free, open, and rules-based Indo-Pacific. Strengthening economic synergies, addressing trade imbalances, and fostering deeper cultural engagements will be key to ensuring the long-term success of this bilateral relationship.
Dr Rahul Mishra is an Associate Professor at the Centre for Indo-Pacific Studies, Jawaharlal Nehru University, India, and a Senior Research Fellow at the German-Southeast Asian Center of Excellence for Public Policy and Good Governance, Thammasat University, Thailand. He can be reached at rahul.seas@gmail.com
