Why Vietnam Matters to India

Ever since the two countries signed a Joint Declaration on Strategic Partnership in November 2007, raising their bilateral relationship to a strategic partnership, India- Vietnam security cooperation has accelerated

By Baladas Ghoshal

Among the countries of Southeast Asia, India had been engaging to promote its Act East Policy and Indo-Pacific vision, Vietnam stands most consequential, as its relationship with it grew exponentially over the last two decades, particularly in the areas of defence, security and maritime cooperation. Prime Minister Narend4a Modi himself called Vietnam an ‘important partner’ in India’s Act East Policy and Indo-Pacific vision in his press statement at Hyderabad House after bilateral talks and admitted that there is good coordination between the two countries in their views concerning the Indo-Pacific. “We will continue to cooperate for a free, open, rule-based and prosperous Indo-Pacific,” declared Modi. Ever since the two countries signed a Joint Declaration on Strategic Partnership in November 2007, raising their bilateral relationship to a strategic partnership, India- Vietnam security cooperation has accelerated, now graduated to a Comprehensive Strategic Partnership since 2016. Prime Minister Pham Minh Chinh’s State visit to India from July 30 to August 1 further solidified that relationship “producing specific and practical outcomes, meeting the expectations of both countries”, to quote Vietnamese Foreign Minister, Bui Thanh Son.

Geo-Political Tension and India-Vietnam Convergence
The visit took place in the backdrop of increasing turbulence in the geo-political scene in the Indo-Pacific region caused by China’s assertive and aggressive behaviour. Both India and Vietnam had been the victims of China’s bellicosity, the former in the border areas of Ladakh and the latter in South China Sea, prompting the two leaders to acknowledge that “the current geo-political realities call for closer cooperation between India and Vietnam,” in their Joint Statement. They recognized convergence in their worldview and expressed support for greater voice and role for Global South in international affairs. The leaders agreed to further strengthen the Vietnam-India Comprehensive Strategic Partnership in all areas to meet both old and new challenges.

Defence and Security Cooperation: the main Thrust
Given the geo-political tension in the region and the security concerns both countries face, it is but natural that cooperation in the areas of defence and security will achieve a major salience in their relationship in recent years.ry.

Fifthlytions Some mechanisms already exist to strengthen defence cooperation. In June 2022, Indian defence minister, Rajnath Singh and his Vietnamese counterpart, Gen. Phan Van Giang signed a “Joint Vision Statement on India-Vietnam Defence partnership Towards 2030,” which was intended to “significantly enhance the scope and scale of existing defence cooperation” by the end of the decade, as the Indian defence ministry said in a statement. The two countries also signed a Memorandum of Understanding on Mutual Logistics Support, “the first such major agreement which Vietnam has signed with any country.” As both countries’ security concerns emanate from the seas, their defence cooperation has been more in the maritime domain through Indian Naval warships and Frigates visit to the Vietnamese ports like Ho Chi Minh City Port and Danang. New Delhi has also donated in 2023 a domestically built missile Corvette INS Kirpan to Vietnam’s navy, the first time that India had gifted an operational corvette to another country. It also sold Vietnam 12 high-speed guard boats. The two nations have also participated in a number of multilateral and bilateral military exercises, including in the South China Sea. Vietnam also finds India a major source for its arms. There has been talk in recent months of Vietnam’s possible purchase of the Indo-Russian Brahmos supersonic cruise missile. There are also reports that Hanoi is interested in India’s Akash surface-to-air missile system. India has offered to provide Vietnam with US$300 million to strengthen its maritime security. India’s pledge was made during Vietnamese Prime Minister’s visit during which he and his host PM Modi, virtually inaugurated a military software hub in the city of Nha Trang in Central Vietnam. The Army Software Park is being developed with India’s assistance and is expected to produce software solutions as well as provide information technology services.

Different dimensions of Cooperation                                                                                                   While not delving into disputes itself in the South China Sea, the two Prime Ministers stressed the importance and need for a Rule-based South China Sea. The Joint Communique emphasized the importance of “maintaining peace, stability, security and freedom of navigation and overflight in the South China Sea.” Both countries are committed to finding peaceful solutions to maritime disputes in accordance with international law, in particular the 1982 UN Convention on the Law of the Sea, or UNCLOS. They stressed that UNCLOS is the legal framework for all maritime activities in the region and the basis for all claims over jurisdiction.

During the visit of Prime Minister Chinh, India and Vietnam signed nine cooperation agreements in the fields of diplomacy, defence, finance, health care, culture, tourism, human resources training, and especially an action programme to implement the bilateral comprehensive strategic partnership in the 2024-2028 period. From a Vietnamese read out from the visit the two sides concurred to bolster their cooperation in five aspects, FM Son said. First, Vietnam and India agreed to promote higher strategic and political trust, to be achieved through further increasing delegation exchanges and meetings through the Party, parliament, government and other channels. Vietnam’s announcement of its membership in the Coalition for Disaster Resilient Infrastructure (CDRI) and its affirmation of early completion of procedures to join the International Solar Alliance (ISA), two of India’s key global initiatives, have contributed to strengthening trust between the two countries, Son added. Second, the two sides will further deepen defence-security cooperation by promoting the efficient implementation of the joint statement on the Vietnam-India defence partnership until 2030, expanding collaboration in maritime security, cyber security, and counter-terrorism. The signing of a 300-million-USD credit package for defence will contribute a great deal in building Vietnamese capabilities.

Third, Vietnam and India pledged to enhance bilateral economic, trade and investment relations, keeping in mind the low volume of trade between the two countries compared to Vietnam’s trade with China and the United States. India-Vietnam trade currently stands at nearly US$ 15billion. The two sides aim for 20 billion USD in two-way trade by 2030, while doubling investment value. Vietnam proposed that India remove trade barriers and open its door for Vietnam’s strong products such as electronics, garment-textiles, and agricultural products; while calling for large-scale Indian corporations to invest in Vietnam in the fields of infrastructure, pharmaceuticals and energy. On this occasion, Vietnamese and Indian businesses signed six major contracts in aviation, airports and logistics. Vietnamese carrier Vietjet Air announced a direct air service from Da Nang to Ahmedabad of India, a step further in increasing the number of direct flights between the two countries from currently 54 flights per week.

Fourth, the two sides also agreed to promote collaboration in research and development (R&D) and innovation in the fields of core technology, semiconductor chips, artificial intelligence, atomic energy, rare earth, while broadening cooperation in the petrochemical sector and new energy, and promoting the establishment of joint ventures to produce IT products and cooperating in training IT engineers to meet the development needs of this industry.

Fifth, the two sides will promote closer bilateral partnership in culture, tourism and people-to-people exchange. They agreed to early sign a deal on tourism cooperation, and shake hands in preserving and restoring Cham towers in My Son Sanctuary in Quang Nam province and diversifying forms of people-to-people exchanges.

Overall, the visit was a great success and it is imperative that Prime Minister Modi makes a reciprocal visit and contributes further enhancing the multi-dimensional cooperation between the two countries.

The author is Former Professor and Chair in South and Southeast Asian Studies, Jawaharlal Nehru University, Delhi.

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