India, Vietnam deepen strategic ties, set $25 bn bilateral trade target for 2030

New Delhi (TIP): India and Vietnam have elevated their bilateral ties to an “Enhanced Comprehensive Strategic Partnership”, with the two countries setting a target of USD 25 billion in bilateral trade by 2030 and expanding cooperation in defence manufacturing, digital payments, rare earths, maritime security and emerging technologies.
According to the Joint Statement issued after talks between Prime Minister Narendra Modi and Vietnam’s General Secretary and President To Lam, the two leaders “agreed to elevate the bilateral relations to Enhanced Comprehensive Strategic Partnership in the spirit of ‘shared vision, strategic convergence, substantive cooperation’.”
The statement said both countries agreed on “a new trade goal of 25 billion USD by 2030” as they seek to deepen economic engagement between the two rapidly growing economies.
The two sides decided to encourage greater investments in sectors including “high-technology, transport, manufacturing, logistics, renewable energy, smart agriculture, electric vehicles and information technology, healthcare, agriculture and agro-processing, aquaculture, tourism and hospitality.”
India and Vietnam also agreed to improve market access for agricultural products. The statement noted that both sides “welcomed the decision to grant market access for Indian Grapes and Vietnamese Durians” and agreed to expedite access for Indian pomegranates and Vietnamese pomelos. On supply chains and trade cooperation, the statement said Vietnam “affirmed its commitments to diversify its supply sources and to import more products from India to serve its domestic production and export needs.”
The two countries also agreed to strengthen cooperation in the digital economy and e-commerce, especially to support MSMEs. According to the statement, both sides will support businesses, “especially MSMEs to participate in e-commerce to integrate deeply and sustainably in the regional and global value chains.”
In the defence sector, the leaders agreed to expand cooperation in “joint research and co-production of new defence technologies”, while also enhancing “capacity building” and “defence industrial cooperation.”
The statement added that the two sides “decided to enhance defence systems procurement between the two countries.” Maritime cooperation emerged as another major focus area, with the leaders emphasising the importance of maritime security and scientific cooperation in the Indo-Pacific region.