India-Vietnam Elevate Ties to Enhanced Comprehensive Strategic Partnership

On September 2023, India and Vietnam officially elevated their bilateral relations to an Enhanced Comprehensive Strategic Partnership during a high-level visit by Indian Prime Minister Narendra Modi to Hanoi. This upgrade builds on the 2016 Comprehensive Strategic Partnership and reflects a mutual intent to deepen cooperation across defense, economic, technological, and regional security domains. The partnership is anchored in shared concerns over maritime security challenges in the Indo-Pacific, particularly China’s assertiveness in the South China Sea, and aims to enhance India’s Act East Policy outreach.

Legal and Constitutional Framework Governing the Partnership

The partnership aligns with the constitutional mandate under Article 253 of the Indian Constitution, empowering Parliament to legislate for implementing international treaties. The Foreign Exchange Management Act (FEMA), 1999, facilitates trade and investment flows under this bilateral framework. Defense cooperation is regulated by the Defence Procurement Procedure (DPP) 2020, which governs military hardware exports and joint development. The partnership also leverages the ASEAN-India Free Trade Area (AIFTA) Agreement effective since 2010, administered by the Ministry of Commerce and Industry, to boost trade and investment.

• Article 253: Legal basis for treaty implementation
• FEMA 1999: Trade and capital flow regulation
• DPP 2020: Defense procurement and technology transfer
• AIFTA: Trade facilitation between India and ASEAN members including Vietnam

Economic Dimensions and Trade Growth

Bilateral trade between India and Vietnam reached USD 15.5 billion in 2023, marking an 11.5% increase from USD 13.9 billion in 2022 (Ministry of Commerce, 2024). India’s exports to Vietnam were USD 8.7 billion, dominated by pharmaceuticals, machinery, and textiles, while imports stood at USD 6.8 billion, primarily comprising electronics and agricultural products. India has committed USD 1 billion in lines of credit to support Vietnam’s infrastructure and energy sectors, signaling a strategic investment push. Defense trade has surged by 25% over the past three years, with exports of military hardware and technology transfers expanding. Tourism exchanges exceeded 1.2 million visitors annually before the COVID-19 pandemic, and joint ventures in IT and pharmaceuticals are forecasted to grow at a 12% CAGR over the next five years (FICCI Report, 2024).

• Trade volume: USD 15.5 billion (2023), 11.5% growth YoY
• India’s exports: USD 8.7 billion; imports: USD 6.8 billion
• USD 1 billion lines of credit for infrastructure and energy
• 25% growth in defense trade over 3 years
• Tourism: 1.2 million visitors annually pre-pandemic
• IT and pharma joint ventures: projected 12% CAGR next 5 years

Defense and Security Cooperation

Defense cooperation forms a core pillar of the Enhanced Comprehensive Strategic Partnership. India and Vietnam have expanded joint military exercises, intelligence sharing, and defense technology collaboration under the oversight of the Ministry of Defence (MOD), India, and Vietnam’s Ministry of National Defence. The Defence Research and Development Organisation (DRDO) engages in technology transfers and co-development projects. However, unlike India’s partnership with Japan, there is no formalized joint maritime security mechanism or permanent naval exercises such as the Malabar series, which limits operational interoperability in the Indo-Pacific maritime domain. This gap constrains rapid coordinated responses to regional security threats, particularly in the South China Sea.

• Joint military exercises and intelligence sharing enhanced
• DRDO involved in defense technology collaboration
• No formal joint maritime security mechanism akin to India-Japan Malabar exercises
• Focus on counterbalancing China’s maritime assertiveness

Key Institutions Driving the Partnership

Several institutions coordinate and implement the partnership’s multifaceted agenda:

• Ministry of External Affairs (MEA), India: Leads diplomatic engagement and treaty negotiations
• Ministry of Defence (MOD), India: Oversees defense cooperation and joint exercises
• Vietnam Ministry of Foreign Affairs: Counterpart for diplomatic and strategic dialogue
• ASEAN: Multilateral framework influencing regional cooperation
• Federation of Indian Chambers of Commerce and Industry (FICCI): Facilitates business partnerships and joint ventures
• Defence Research and Development Organisation (DRDO): Engaged in defense technology collaboration

Comparative Analysis: India-Vietnam vs India-Japan Strategic Partnerships

Critical Gap: Absence of Formal Maritime Security Mechanism

Despite the strategic rhetoric, India-Vietnam relations lack a formalized joint maritime security framework comparable to the India-Japan Malabar naval exercises. This absence limits operational interoperability and rapid coordinated responses to maritime security threats in the Indo-Pacific, particularly amid increasing Chinese naval assertiveness. Establishing such mechanisms would enhance India’s Act East Policy effectiveness and regional security architecture.

Significance and Way Forward

• The partnership strengthens India’s strategic footprint in Southeast Asia, complementing its Act East Policy.
• Boosting defense cooperation with formal joint maritime exercises will improve operational readiness.
• Expanding economic ties beyond trade to include technology and infrastructure investments will deepen interdependence.
• Leveraging ASEAN frameworks alongside bilateral mechanisms can enhance multilateral cooperation.
• Addressing the maritime security gap is critical to counterbalance China’s influence in the Indo-Pacific.

Jharkhand & JPSC Relevance

• JPSC Paper: Paper 2 (International Relations and Indian Foreign Policy)
• Jharkhand Angle: Jharkhand’s mineral exports and industrial sectors can benefit from enhanced India-Vietnam trade relations, especially in pharmaceuticals and IT.
• Mains Pointer: Frame answers highlighting how strategic partnerships influence regional stability and economic opportunities for resource-rich states like Jharkhand.