India Vietnam Relations

India Vietnam relations have been exceptionally friendly and cordial since their foundations were laid by founding fathers of the two countries – President Ho Chi Minh and President Rajendra Prasad and Prime Minister Nehru. The traditionally close and cordial relations have their historical roots in the common struggle for liberation from foreign rule and the national struggle for independence. 

• Pandit Jawaharlal Nehru was one of the first visitors to Vietnam after its victory against the French at Dien Bien Phu in 1954. President Ho Chi Minh went to India in February 1958. President Rajendra Prasad visited Vietnam in 1959. 
• In recent times, political contacts have strengthened as reflected in several high-level visits by leaders from both sides. Trade and economic linkages continue to grow. India’s thrust under the ‘Look East’ policy combined with Vietnam’s growing engagement within the region and with India has paid rich dividends.
• Vietnam is an important regional partner in South East Asia. India and Vietnam closely cooperate in various regional forums such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO.

India Vietnam Relations

 

• On the occasion of the 45th anniversary of the establishment of diplomatic relations between India and Vietnam and the 10th anniversary of the establishment of Strategic Partnership, the Vietnam Buddhist Sangha in collaboration with the Vietnam-India Friendship Association (VIFA) and the Embassy of India, in Hanoi, organized a major four-day “Buddhist Festival – Days of India” in Tay Thien, Tam Dao District, Vinh Phuc Province.
• An important delegation comprising 200 monks and nuns from Ladhak and Darjeeling, under the leadership of His Holiness Gyalwang Drukpa Jigme Pema Wangchen from the Hemis Jangchubling Monastery, Leh took part in the celebrations.
• International Day of Yoga: The third successive International Day of Yoga was held at the iconic Hoan Kiem Lake area of Hanoi on 17th June 2017. This was organized by the Mission, in collaboration with the People’s Committee of Hanoi, Ministry of Culture, Sports and Tourism, Ministry of Foreign Affairs, Ministry of Public Security and Ministry of National Defence of Vietnam, the United Nations Office in Hanoi.
• Youth Delegation: An Indian Youth Delegation visited Vietnam from 21-28 July 2016, under the Youth Exchange Programme between the two countries. This is the first visit under the MOU signed in 2014. The Vietnamese Youth Delegation visited India from 27th March to 5th April 2017.
• Political exchange: Institutional mechanisms for bilateral exchanges
• Trade and Economic Cooperation:

• Bilateral Trade: From a meagre US$200 million in the year 2000, bilateral trade between India and Vietnam has seen steady growth over the years. According to Indian statistics in 2019-20, bilateral trade between India and Vietnam reached US$12.34 billion. This marked a decrease of 9.9 percent year-on-year, largely on account of COVID-19 related trade disruptions. 
• India’s Investments in Vietnam: India’s investments in Vietnam are estimated at around US$ 1.9 billion including investments routed through third countries. According to Vietnam’s Foreign Investment Agency, as of June 2020, India has 278 valid projects with total invested capital of US$ 887.27 million, ranking 26th among countries and territories investing in Vietnam. 
• Vietnam’s Investments in India: As of 2019, Vietnam has six investment projects in India with total estimated investment of US$ 28.55 million, primarily in the areas of pharmaceuticals, information technology, chemicals and building materials.
• Development Partnership: India has a long-standing development partnership with Vietnam that has made positive contributions towards capacity building and socio-economic development of Vietnam. India has also been providing assistance to Vietnam within the ASEAN framework. Under the Mekong Ganga Cooperation (MGC) framework, India has been taking up Quick Impact Projects (QIPs), each valued at US$50,000, in different provinces of Vietnam for development of community infrastructure

7. Cultural Cooperation: The Vietnam Institute for Indian and South-West Asian Studies (VIISAS) under the Vietnam Academy of Social Sciences and the Centre for Indian Studies at the Ho Chi Minh National Academy of Politics are among the key centres in Vietnam focused on Indian studies and have academic cooperation MOUs with some Indian institutions.

• Tourism and People-to-People Contacts: Both countries have facilitated simplified visa regime to promote bilateral tourism. In December 2017, Vietnam extended e-visa facilities to Indian citizens travelling to Vietnam. India has e-tourist visa arrangement for Vietnamese citizens since 2015. The long-awaited direct flights between the two countries commenced in October 2019. It is expected that the direct flight connectivity will further increase two-way tourism as well as trade and business linkages.
• Capacity Building, Training, Scholarships: Vietnam has been a large recipient of training programmes under Indian Technical and Economic Cooperation (ITEC) programme.  Vietnam was also among a select group of partner countries where Government of India launched the new e-ITEC programme in October 2019.
• Indian Community: An estimated 5000 people from India, including some short-term visitors, constitute the Indian community in Vietnam. A majority of them are based in and around Ho Chi Minh City (HCMC) in the southern part of Vietnam

Challenges:

• Vietnam opposed the “Quad” or quadrilateral coalition among India, the US, Japan and Australia.
• The proposed sale of the BrahMos supersonic cruise missile has taken a back seat as there has been no response from Hanoi.
• The line of credit offered has yet to be operationalised for facilitating deeper defence cooperation.

Way Forward:

• Both Countries need to leverage the economic opportunities available because of anti-China sentiments and several manufacturing firms deciding to shift from China.
• Coordinating at Global Level
• Coordinating With Other Regional Partners
• Both Countries should expedite the process of negotiations for finalisation of defence deals.

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