India, Vietnam Elevate Ties, Set $25 Billion Trade Target for 2030

India and Vietnam upgraded ties to an 'Enhanced Comprehensive Strategic Partnership', setting a USD 25 billion trade target for 2030. They also agreed to boost cooperation in defence, digital payments, maritime security, and rare earths.

India and Vietnam on Wednesday 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'."

Deepening Economic Engagement and Trade

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."

Market Access for Agricultural Products

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."

Expanding Defence and Maritime Cooperation

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 Security in the Indo-Pacific

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. Vietnam thanked India for inviting it to assign an International Liaison Officer at the Information Fusion Centre - Indian Ocean Region in Gurugram to strengthen Maritime Domain Awareness cooperation.

Collaboration in Technology and Digital Payments

On science and technology, India and Vietnam agreed to deepen collaboration in areas including "Digital Public Infrastructure, 6G, Artificial Intelligence, space and nuclear technology, marine sciences, biotechnology, pharmaceuticals, advanced materials and critical minerals."

Financial Innovation and Digital Payments

The leaders also welcomed the signing of a Memorandum of Understanding between the Reserve Bank of India and the State Bank of Vietnam on "financial innovation and digital payments." The statement added that both countries would "promote linkages for retail payment platforms via QR Codes that would facilitate tourism and businesses of both sides."

Speaking about the MoUs signed between the two countries, MEA Secretary (East), P Kumaran, said that the MOU between RBI and State Bank of Vietnam will be an important collaboration project in FinTech, and the MOU on cooperation in rare earth minerals underscores the importance both sides attach to supply chain resilience and diversification.

Cooperation on Energy and Critical Minerals

India and Vietnam further agreed to cooperate in renewable energy, climate-resilient technologies and critical minerals. The leaders welcomed the signing of an MoU between IREL (India) Limited and Vietnam's Institute for Technology of Radioactive and Rare Elements for cooperation in the field of rare earths.

India's Development Partnership in Vietnam

The statement also highlighted India's development partnership projects in Vietnam. It noted that India has supported "66 Quick Impact Projects (QIPs) across 32 out of Vietnam's 34 provinces", which have received appreciation for their "grassroots socio-economic impact."

New Trade Targets and Future Prospects

As India and Vietnam continue to deepen their engagements, MEA Secretary (East), P Kumaran, informed today that the two countries have agreed upon setting a new trade target of USD 25 billion to be achieved by 2030.

India has also thanked Vietnam for the invitation to participate in the country's nuclear power sector. "We (India, Vietnam) agreed that a new trade target of USD 25 billion would be set for achieving by 2030," Kumaran said during a special press briefing on the visit of Vietnam's President To Lam to India in the national capital on Wednesday. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)