Embassy of India

Hanoi, Vietnam

India - Vietnam Relations

Overview

            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 both countries. India initially maintained Consulate-level relations with the then North and South Vietnams and 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 Prime Minister Nguyen Tan Dung to India in July 2007. In 2016, during Prime Minister Modi’s visit to Vietnam, the relations were further elevated to a “Comprehensive Strategic Partnership”, a status that Vietnam shares with only two other countries – Russia and China.

I. Political Exchanges

Recent Visits from India

Recent Visits from Vietnam

Institutional mechanisms for bilateral exchanges

There are several bilateral mechanisms at various 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. India-Vietnam Joint Sub-Commission on Trade at Commerce Secretary-Level held its 4th meeting in Hanoi in January 2019. The 1st India-Vietnam Maritime Security Dialogue was held in Hanoi in March 2019. The next round of Annual Security Dialogue at Defence Secretary-level is scheduled to be held in Ho Chi Minh City in October 2019.  Both countries also have regular Parliamentary exchanges.

II. Trade & Economic Cooperation

Leaders of both countries have set a trade target of US$15 billion by 2020. Bilateral trade turnover registered a record annual growth of 12.81% and touched US$ 13.93 billion in 2018. As per GoI’s data for January-July 2019, the bilateral trade reached US$ 7.5 billion. India is now among the top ten trading partners of Vietnam. Vietnam is the 4th largest trading partner of India among ASEAN countries after Indonesia, Singapore and Malaysia. Vietnam is the 8th largest destination of India’s exports globally. Vietnam is also the second largest export destination for India after Singapore in the ASEAN region.

India’sInvestments in Vietnam

India’s investments in Vietnam are estimated at around US$ 1.66 billion including investments routed through third countries. According to Vietnam’s Foreign Investment Agency, in 2018, India registered 40 new projects with total capital of US$ 111.88 million. 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

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 scoio-economic development.  India has also been providing assistance to Vietnam within the ASEAN framework. In addition, under the Mekong Ganga Cooperation framework, India announced a Revolving Fund with an annual contribution of US$ 250,000 for Quick Impact Projects in Vietnam for development of community infrastructure.  So far, 9 Quick Impact Projects have been implemented, while 5 new projects are under implementation in 2019-20. Additionally, 7 grant-in-aid assistance projects for the benefit of the Cham community in Ninh Thuan province, at a total cost of around US$ 1.54 million, are also under implementation. India is also providing technical assistance for conservation and preservation of Cham monuments located in the Quang Nam Province of Vietnam.

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 India and Vietnam through cultural exchanges. An MoU for cooperation in Youth Affairs was signed between the Ministry of Youth Affairs and Sports and the Ho Chi Minh Communist Youth Union of Vietnam in September 2014, under which both sides regularly exchange youth delegations.
The Institute for Indian and South-West Asian Studies under the Vietnam Academy of Social Sciences was inaugurated in Hanoi on 7 January 2012 on the occasion of the 40th anniversary of establishment of diplomatic relations. During President Pranab Mukherjee’s State Visit to Vietnam in September 2014, both Presidents inaugurated the Centre for Indian Studies at the Ho Chi Minh National Academy of Politics which is the apex institute for training cadres of the Communist Party of Vietnam.

Tourism and People-to-People Contacts

The year 2019 is being celebrated as the ASEAN-India Year of Tourism. Then Minister of State (Independent Charge) of Tourism Mr. K. J. Alphons visited Vietnam on 17-18 January, 2019 for the Seventh meeting of ASEAN-India Tourism Ministers and ASEAN Tourism Forum 2019, held in Ha Long City. Two India-Vietnam Tourism Roadshows have been organised in January and August 2019 in Hanoi by the Ministry of Tourism and the Embassy of India to promote tourism exchanges.  Both countries have facilitated simplified visa regime to promote bilateral tourism. In December 2017, Vietnam decided to extend e-visa facilities to Indian citizens travelling to Vietnam. India has e-tourist visa arrangement for Vietnamese citizens since 2015. The expected direct flight connectivity between both countries from October 2019 may further promote two-way tourism and 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. This includes, annual 131 training slots under ITEC/ Civilian & TCS of Colombo Plan and annual 70 training slots under ITEC (Defence). 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. Recently, Government of India announced 1000 PhD fellowships in 23 IITs for scholars from ASEAN countries.

Mahatma@150

Embassy of India has been organizing 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 GoI.  

Indian Community

An estimated 3500 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 Southern 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 Nation organisations. Indian Business Chamber (INCHAM), a recognised organisation by the Government of Vietnam, represents Indian community and promotes Indian business interests in Vietnam.

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