In a significant stride towards enhancing regional cooperation and security, India has extended a generous $300 million loan to Vietnam to bolster its maritime security. This announcement came on Thursday, setting the stage for a broader strategic collaboration between the two nations. During the visit of Vietnamese Prime Minister Pham Minh Chinh to New Delhi, Indian Prime Minister Narendra Modi underscored the importance of Vietnam in India’s strategic vision for Southeast Asia and its broader Indo-Pacific strategy.
Prime Minister Chinh echoed Modi’s sentiments, highlighting the myriad of security challenges that the world faces today. However, he also emphasized the potential for cooperation in overcoming these challenges. He underscored the necessity for a global approach grounded in multilateralism to navigate these tumultuous times. This mutual understanding between the leaders set a collaborative tone for future engagements.
The bilateral cooperation between India and Vietnam isn’t limited to defense alone; it spans a wide array of sectors including semiconductors, green technology, artificial intelligence, cloud computing, and climate action. A notable highlight of this visit was the virtual inauguration of the “Army Software Park” in Vietnam. This educational facility, established with India’s assistance, aims to equip Vietnamese soldiers with essential digital skills, reflecting the broader goal of enhancing technological cooperation between the two nations.
Trade between India and Vietnam has seen a significant uptick, reflecting the deepening economic ties. In 2022 alone, bilateral trade surged by 27%, reaching a commendable $14.14 billion. Indian exports to Vietnam amounted to $6.7 billion, comprising iron and steel, cotton, cereals, meat and fishery products, electrical machinery, automobile parts, cement, chemicals, and pharmaceuticals. Conversely, Indian imports from Vietnam were valued at $7.44 billion, predominantly featuring electrical and electronic equipment, inorganic chemicals, machinery, copper, rubber, coffee, tea, spices, and iron and steel.
Investment flows further highlight the robust economic relationship between the two countries. Indian investments in Vietnam stand at an impressive $1.9 billion, covering diverse sectors such as energy, mineral exploration, agriculture, and information technology. On the flip side, Vietnamese investments in India, although smaller in scale at $28.55 million, are concentrated in vital sectors like pharmaceuticals, information technology, chemicals, and building materials.
As India and Vietnam strive to double their trade and investment within the next five years, the strengthened cooperation in defense, technology, and economic sectors will serve as a solid foundation. This partnership is not just about mutual benefit but also about fostering stability and prosperity in the broader Indo-Pacific region. With both nations committed to a multilateral approach, the future holds promising prospects for a more secure and interconnected world.
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