India and Vietnam have agreed to elevate their relationship to an enhanced comprehensive strategic partnership, setting a target to increase bilateral trade to USD 25 billion by 2030.
Prime Minister Narendra Modi said the decision builds on a decade of expanding economic ties, noting that trade between the two countries has doubled to USD 16 billion. He said both sides had taken “several important decisions” to support the new target, including measures to ease access for Indian pharmaceuticals in Vietnam and facilitate exports of agricultural, fisheries and animal products.
Modi also highlighted cooperation in critical minerals, rare earths and energy security, describing them as essential to strengthening supply chain resilience. Financial connectivity was another focus, with India’s Unified Payments Interface (UPI) set to be linked with Vietnam’s fast payment system.
Both sides agreed to update the India-ASEAN Trade in Goods Agreement (AITIGA) by year-end, which officials said would inject new momentum into regional trade and investment flows. Beyond government-level commitments, industry organisations from both countries signed a memorandum of understanding to deepen commercial engagement.
The Associated Chambers of Commerce and Industry of India (Assocham) and the Vietnam Chamber of Commerce and Industry (VCCI) formalised an agreement in the presence of officials from Maharashtra and Vietnam’s leadership.
The MoU aims to expand two-way trade and investment through regular exchange of business intelligence, market insights, and structured business delegations.
Industry representatives said the agreement is intended to move beyond policy announcements and into execution-focused cooperation.
Milind Hardikar, Chair of the Maharashtra State Development Council of Assocham, said India and Vietnam were “emerging as strong economic partners in the Indo-Pacific” and stressed the need for sustained business engagement frameworks rather than episodic interactions.
The chambers also committed to annual action plans aimed at converting discussions into measurable trade and investment outcomes.
State-level Investment Push
Maharashtra emerged as a key focal point for sub-national cooperation, with officials positioning the state as a gateway for Vietnamese investment into India.
State representatives said Maharashtra is developing dedicated infrastructure ecosystems, including IT parks and data centres, to attract Vietnamese firms. The state also highlighted opportunities in green hydrogen, electronics, steel and bamboo-based industries.
Officials emphasised Maharashtra’s logistics network—spanning ports, airports and rail connectivity—as a comparative advantage for foreign investors.
A state minister said Maharashtra aims to support India’s broader economic ambition while also pursuing its own target of becoming a USD 1 trillion economy by 2027.
Vietnamese representatives responded by expressing interest in building long-term investment ecosystems in India, particularly in digital technology, research and development, and smart urban infrastructure.
The India-Vietnam engagement also expanded into urban-level partnerships, with Mumbai and Ho Chi Minh City identifying multiple areas of cooperation.
At a roundtable organised by the World Trade Centre Mumbai and the All India Association of Industries, officials from both cities discussed collaboration in logistics, smart infrastructure, tourism, healthcare and sustainable energy.
Representatives from Ho Chi Minh City outlined plans to build a long-term ecosystem for Indian investment, focusing on digital transformation, innovation hubs, and urban governance models.
Mumbai officials highlighted the city’s role as India’s financial and entertainment hub, positioning it as a gateway for cultural and economic exchange.
Experts at the roundtable said city-level cooperation could help operationalise national-level agreements by creating direct business linkages and pilot projects in emerging sectors.
Focus on Supply Chains, Tech and Tourism
Industry leaders and experts repeatedly pointed to supply chain diversification and technology collaboration as central pillars of the bilateral relationship.
Participants identified semiconductors, electronics manufacturing, artificial intelligence, and critical minerals as key areas of future cooperation.
They also highlighted opportunities in tourism and cultural exchange, with proposals to expand “two-way tourism” and heritage-based travel initiatives.
Vijay Kalantri, Chairman of the World Trade Centre Mumbai, said bilateral trade, currently at around USD 16 billion, could reach USD 30 billion with stronger cooperation in data centres, IT services, textiles and agro-processing.
He also proposed a “Coffee Diplomacy” initiative, suggesting the establishment of a dedicated Coffee Diplomacy Centre in Mumbai to deepen cultural and commercial ties.
Business leaders said India’s services sector and Vietnam’s manufacturing base created a natural complementarity that could accelerate trade expansion if supported by logistics improvements and regulatory simplification.
Across government, industry and city-level engagements, stakeholders emphasised that the India-Vietnam partnership is moving beyond traditional trade discussions toward a multi-layered economic framework.
Experts said the convergence of policy alignment, private sector participation and urban cooperation could help both countries navigate global trade uncertainties and supply chain disruptions.
While the USD 25 billion trade target remains a central benchmark, participants at various forums underscored that the broader objective is to build a resilient, diversified and technology-driven economic corridor between India and Vietnam. |
