On Thursday, India and Vietnam engaged in bilateral discussions, during which Prime Minister Narendra Modi announced a USD 300 million line of credit to bolster Vietnam’s maritime security. Vietnamese Prime Minister Pham Minh Chinh, on a three-day visit to India, was informed by Modi that India views Vietnam as a crucial part of its Southeast Asian strategy and Indo-Pacific vision. Jaideep Mazumdar, Secretary (East) at the Ministry of External Affairs, detailed that the two credit lines—USD 180 million for Coast Guard ships and USD 120 million for fast-craft border patrol boats—were aimed at enhancing Vietnamese maritime forces. Chinh emphasized the importance of cooperation amid global security challenges, highlighting the Indo-Pacific region’s dual role as a growth engine and a hub of significant political activity.
During a joint news conference, both leaders expressed their intent to broaden their collaboration beyond defense, into areas such as semiconductors, green technology, artificial intelligence, cloud computing, and climate action. They also virtually inaugurated the “Army Software Park” in Vietnam, an educational facility established by New Delhi to train Vietnamese soldiers in digital skills. The bilateral trade between India and Vietnam grew by 27% in 2022, reaching USD 14.14 billion. Indian exports to Vietnam totaled USD 6.7 billion, including goods like iron, steel, cotton, cereals, and pharmaceuticals, while imports from Vietnam amounted to USD 7.44 billion, featuring products such as copper, rubber, coffee, tea, and electronic equipment.
India has invested approximately USD 1.9 billion in Vietnam, focusing on sectors like energy, mineral exploration, agriculture, and information technology. Conversely, Vietnamese investments in India exceed USD 28.55 million, targeting areas such as pharmaceuticals, information technology, chemicals, and building materials. The economic exchanges underscore the robust trade relationship, with India exporting diverse goods including meat, fishery products, electrical machinery, and automobile parts, and importing Vietnamese commodities like machinery, spices, and inorganic chemicals.
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