Embassy of India

Hanoi, Vietnam

Embassy of India

Hanoi

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India – Vietnam Relations

India and Vietnam, with historical roots in the common struggle for liberation from colonial rule and the national struggle for independence, share traditionally close and cordial bilateral relations. Mahatma Gandhi and Ho Chi Minh, regarded as the Father of Nation in India and Vietnam respectively, led people in their heroic struggle against colonialism in the two countries. India was the Chairman of the International Commission for Supervision and Control (ICSC), which was formed pursuant to the Geneva Accord of 1954 to facilitate the peace process in Vietnam. India initially maintained Consulate-level relations with the then North and South Vietnams and later established full diplomatic relations with unified Vietnam on 7 January 1972. Relations between the two countries were elevated to the level of ‘Strategic Partnership’ during the visit of Vietnam’s Prime Minister Nguyen Tan Dung to India in July 2007. In 2016, during Prime Minister Modi’s visit to Vietnam, bilateral relations were further elevated to a “Comprehensive Strategic Partnership”.

I. POLITICAL EXCHANGES

Recent Visits from India:

Recent Visits from Vietnam:

Institutional mechanisms for bilateral exchanges

There are several bilateral mechanisms at different levels between India and Vietnam. The Joint Commission Meeting at the Foreign Ministers' level and the Foreign Office Consultations and Strategic Dialogue at Secretary-level provide the broad framework for bilateral consultations encompassing all areas of mutual interest. The 6th Joint Commission Meeting was held at Hanoi in August 2018. The 10th Foreign Office Consultations and the 7th Strategic Dialogue were held in New Delhi in April 2018. In view of the COVID-19 related travel restrictions, the latest (17th) round of Joint Commission Meeting was held online between External Affairs Minister of India and the Foreign Minister/deputy PM of Vietnam on 25 August 2020.

India-Vietnam Joint Sub-Commission on Trade at Commerce Secretary-Level held its 4th meeting in Hanoi in January 2019. The 12th Annual Security Dialogue at Defence Secretary-level was held in Ho Chi Minh City in October 2019. The 1st India-Vietnam Maritime Security Dialogue was held at Additional Secretary-level in Hanoi in March 2019. Both countries also have regular Parliamentary exchanges.

II. 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. For India, Vietnam is the 18th largest trading partner globally and within ASEAN, the 4th largest trading partner after Singapore, Indonesia and Malaysia. For Vietnam, India is the 7th largest trading partner, 7th largest source of import and 9th largest export market globally. In 2019-20, five key items imported into India from Vietnam included mobile phones and components, machinery, computers & electronic hardware, natural rubber, chemicals and coffee. Key items exported from India to Vietnam were meat and fishery products, corn, steel, pharmaceuticals, cotton and machinery.

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. Major sectors of investment are energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agro-chemicals, IT and auto components.

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$50,000, in different provinces of Vietnam for development of community infrastructure. With their short gestation period, the QIPs bring direct benefits to communities at the grassroots level. So far, since 2017, 13 QIPs have been completed in 12 provinces of Vietnam, while 13 new projects are under implementation during the year 2020-21. In addition, 7 grant-in-aid assistance projects for the benefit of the Cham community in Ninh Thuan province are under implementation with an outlay of around US$ 1.54 million. India is also providing technical assistance worth US$ 2.25 million for conservation and restoration of ancient Cham monuments located in the Quang Nam Province of Vietnam, showcasing the deep civilizational connection between the two countries.

III. CULTURAL COOPERATION

The Swami Vivekananda Indian Cultural Centre was established in Hanoi in September 2016 to promote a comprehensive understanding of India and to foster closer links between peoples of both countries through cultural exchanges. Both countries also have regular exchange of youth delegations. Mission also maintains close relations with academia and think tanks in Vietnam. 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

The year 2019 was celebrated as the ASEAN-India Year of Tourism. Mission organized two India-Vietnam Tourism Roadshows in January and August 2019 in Hanoi, whereas another roadshow was organised by the Consulate General of India in Ho Chi Minh City in November 2019. 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 receives more than 200 training slots annually, including more than 130 training slots under ITEC/Civilian and technical Cooperation Scheme of Colombo Plan and further 70 training slots under ITEC (Defence). Separately, Indian Council of Cultural Relations has several annual scholarship programmes including 14 scholarships under EEP/CEP (Education Exchange programme/Cultural Exchange Programme); 10 under MGCSS (Mekong Ganga Cooperation Scholarship Scheme); 20 under GSS (General Scholarship Scheme); and 4 scholarships for Buddhist and Sanskrit studies. The utilization of annual training slots and scholarships on offer has consistently been very high. The recent initiative of Government of India launched in October 2019 to offer PhD fellowship programme in association with 23 IITs for 1000 students from ASEAN countries, has also received good response from Vietnam. Vietnam was also among a select group of partner countries where Government of India launched the new e-ITEC programme in October 2019.

150th Birth Anniversary of Mahatma Gandhi

Embassy of India organized various events to celebrate Mahatma@150 in 2018-19. These include Jaipur artificial limb fitment camps, which were organized in four provinces of Vietnam, benefitting 1000 people, under ‘India for Humanity’ initiative of the Government of India. The Embassy of India, Vietnam’s Ministry of Information and Communication and Vietnam Post jointly launched a commemorative stamp on Mahatma Gandhi on Gandhi Jayanti on October 2, 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. Most of the community members are professionals employed in business and trading companies, oil refineries, IT sector, hotels/restaurants, mining, yoga institutions, civil aviation sector and schools. Some Indians in Vietnam currently hold senior positions in multi-national companies and international organisations, including the United Nations organisations. Indian Business Chamber (INCHAM), a recognized organisation by the Government of Vietnam, represents Indian community and promotes Indian business interests in Vietnam.

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17 August 2020