Vietnam, India Target US$ 25 Billion Bilateral Trade
Vietnam and India have agreed to step up efforts to raise bilateral trade to $25 billion at an early date, while improving market access for products from both countries.
The agreement was reached during talks between Vietnamese Prime Minister Le Minh Hung and Indian Prime Minister Narendra Modi on September 12, held during Hung’s working visit to India to attend the 18th BRICS Summit in New Delhi.
The two leaders noted that Vietnam and India are among the world’s fastest-growing economies and have complementary strengths that offer significant scope for expanding economic cooperation. They agreed to facilitate market access, particularly for pharmaceuticals, agricultural products, seafood and livestock products.
Hung proposed establishing economic corridors and supply chains to improve connectivity between the two economies. He also called for consideration of negotiations on a bilateral Free Trade Agreement and urged both sides to coordinate with ASEAN members to accelerate the review of the ASEAN-India Trade in Goods Agreement (AITIGA).
Vietnam also welcomed investment from major Indian companies, particularly in technology, infrastructure, energy and pharmaceuticals.
Connectivity was another key area discussed during the meeting. The two Prime Ministers agreed to explore railway connectivity projects, establish a South Asia–Southeast Asia connectivity corridor and strengthen links between the two countries’ seaports in connection with the Eurasia maritime route.
Hung also proposed that India increase the frequency of direct flights between major cities in Vietnam and India.
Defence and security cooperation was identified as an important pillar of bilateral relations. The two sides agreed to strengthen cooperation in defence industry and military trade, training and the provision of preferential credit. They also agreed to work towards convening the first meeting of the Foreign Affairs–Defence Dialogue mechanism at an early date.
Technology cooperation is set to receive greater attention, with Hung proposing a Vietnam–India technology connectivity strategy focused on emerging areas such as artificial intelligence and 5G/6G mobile network technologies.
He also proposed joint programmes to train AI and semiconductor engineers, expand digital technology training for young people and strengthen links between start-ups and innovation enterprises in both countries.
The two leaders also discussed expanding cooperation in tourism, culture and people-to-people exchanges, building on the longstanding historical and cultural ties between Vietnam and India.
Hung proposed greater cultural and sports exchanges, along with cooperation in yoga and Buddhist exchanges in 2027, when the two countries will mark the 55th anniversary of the establishment of diplomatic relations.
Modi agreed with the proposals and reaffirmed India’s support for measures aimed at expanding bilateral cooperation across sectors. The two leaders also agreed to strengthen coordination and mutual support at regional and international forums.
