Table of Contents
Question
- India and Vietnam both can mutually benefit each other in multiple areas of cooperation to bring peace in Indo-Pacific. Critically analyze the statement.
The News
- Recently, India and Vietnam signed a Memorandum of Understanding (MoU) on mutual logistics support.
- The MoU was signed during the visit of Defence Minister Rajnath Singh to the Southeast Asian nation.
- The defence minister and his Vietnam counterpart General Phan Van Giang also signed ‘a joint vision statement on India-Vietnam Defence Partnership towards 2030’, which will significantly enhance the scope and scale of existing defence cooperation.
India Vietnam
India-Vietnam
- Areas of Cooperation
Trade
- Vietnam is the 4th largest trading partner of India among ASEAN countries after Indonesia, Singapore and Malaysia.
- Vietnam is the second largest export destination for India after Singapore in the ASEAN region.
- India’s investments in Vietnam are currently estimated at around $2 billion including investments routed through third countries.
- Bilateral trade between India and Vietnam was at $11.12 billion in 2020–21 which was 22.47% less than previous year due to Covid-19 pandemic restrictions.
Strategic Cooperation
Defence
Defence
Defence
- India Vietnam finalized logistics agreement. Logistics agreements are administrative arrangements facilitating access to military facilities for exchange of fuel and provisions on mutual agreement simplifying logistical support and increasing operational turnaround of the military when operating away from India.
- India has signed several logistics agreements including all Quad countries, France, Singapore and South Korea beginning with the Logistics Exchange Memorandum of Agreement with the U.S. in 2016.
Energy & Assistance
- India and Vietnam have signed an agreement for oil exploration in the South China Sea.
- India Vietnam have a Work Plan for the years 2018-2022 between the ICAR and Ministry of Agriculture and Rural Development of Vietnam.
- India’s AERB & Vietnam’s Agency for Radiation and Nuclear Safety department have signed an agreement regarding defence industry and nuclear cooperation.
- It has also provided a grant of $5 million for the development of an army software park at the Nation Telecommunication University of Vietnam.
- In 2020, India had handed over a high speed guard boat along with a defence line of credit of $100 million to Vietnam.
Energy & Assistance
- India and Vietnam have signed an agreement for oil exploration in the South China Sea.
- India Vietnam have a Work Plan for the years 2018-2022 between the ICAR and Ministry of Agriculture and Rural Development of Vietnam.
- India’s AERB & Vietnam’s Agency for Radiation and Nuclear Safety department have signed an agreement regarding defence industry and nuclear cooperation.
- It has also provided a grant of $5 million for the development of an army software park at the Nation Telecommunication University of Vietnam.
- In 2020, India had handed over a high speed guard boat along with a defence line of credit of $100 million to Vietnam.
Tourism & P2P
- Every year around 1.5 lakh Indians visit Vietnam and in return around 30,000 Vietnamese visit India. India is a favored spiritual destination for many Vietnamese because it is home to many famous Buddhist places.
- Around 5,500 Indians reside in Vietnam (June 2021). Most of the community lives in Ho Chi Minh City. Indian Business Chamber (INCHAM) is an organization recognized by the Government of Vietnam that represents the Indian community and promotes Indian business interests in Vietnam.
- India and Vietnam also closely cooperate in various regional forums like ASEAN regional forum, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM)
Why Vietnam is important?
- Act East Policy & ASEAN Centrality
- Indo Pacific & SAGAR doctrine
- Countering China
The Big Challenge
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