India and Vietnam Upgrade Ties, Aim for $25 Billion Trade Milestone

NEW DELHI, May 6: Narendra Modi and To Lam on Wednesday announced a major upgrade in bilateral relations, elevating ties between India and Vietnam to an Enhanced Comprehensive Strategic Partnership, while setting an ambitious target of achieving USD 25 billion in annual trade by 2030.
The decision came after high-level talks in New Delhi, where both leaders focused on expanding cooperation in key areas such as trade, defence, digital infrastructure, and critical minerals against the backdrop of evolving global geopolitical challenges.
A total of 13 agreements were signed following the discussions, covering sectors including digital payments, pharmaceuticals, rare earth minerals, education, banking, and cultural exchanges. These agreements are expected to significantly strengthen bilateral engagement and economic collaboration.
Regional security also featured prominently in the talks, particularly developments in the Indo-Pacific. Both sides expressed shared concerns over rising tensions and emphasized their commitment to maintaining peace, stability, and adherence to international law in the region. Issues related to increased military activity in the South China Sea were also discussed during delegation-level meetings.
President Lam, who recently assumed office, is on his first state visit to India, leading a senior delegation on a three-day trip aimed at reinforcing bilateral ties.
Highlighting the progress in relations, Modi noted that Vietnam was the first ASEAN nation to establish a comprehensive strategic partnership with India a decade ago. He said the relationship has since witnessed rapid growth and is now poised for a new phase of expansion.
The Prime Minister emphasized that cooperation will extend across multiple pillars, including connectivity, cultural exchange, capacity building, sustainability, and supply chain resilience.
Bilateral trade between the two nations has doubled over the past ten years to reach USD 16 billion. With the newly set target of USD 25 billion by 2030, both countries aim to unlock further economic potential through enhanced market access and trade facilitation.
Key agreements are expected to improve access for Indian pharmaceutical products in Vietnam and ease the export of agricultural and fisheries goods. Agricultural trade is likely to see a boost, with Indian fruits such as grapes and pomegranates expected to enter Vietnamese markets soon.
Both nations also agreed to expedite the review and upgrading of the India-ASEAN trade agreement, which is expected to strengthen economic integration and investment flows across the region.
Financial connectivity is another major focus area. Plans are underway to link India’s Unified Payments Interface (UPI) with Vietnam’s fast payment systems, enabling smoother cross-border transactions. Additionally, cooperation between central banks will be enhanced to support financial integration.
On the strategic front, Modi described Vietnam as a crucial partner in India’s Act East Policy and its broader Indo-Pacific vision. He stressed that stronger defence and security cooperation would contribute to regional peace and stability.
India also acknowledged Vietnam’s support in condemning recent terrorist incidents, reaffirming mutual commitment to counterterrorism efforts.
President Lam, in his remarks, underscored the importance of deepening political trust and strengthening defence collaboration. Both sides reiterated their intent to enhance security cooperation and build on existing frameworks.
Recent defence initiatives include agreements on submarine search and rescue operations and a letter of intent aimed at boosting defence industry collaboration.
As both nations continue to emerge as fast growing economies, the upgraded partnership signals a shared commitment to mutual growth, regional stability, and stronger global positioning.