India, Vietnam elevate ties, aim for $25B bilateral trade
What's the story
India and Vietnam have upgraded their bilateral relationship to an Enhanced Comprehensive Strategic Partnership. The decision was announced after talks between Prime Minister Narendra Modi and Vietnamese President To Lam in New Delhi on Wednesday. The move marks a major step forward in diplomatic and economic engagement between the two countries.
Trade goals
Target to increase bilateral trade to $25 billion by 2030
A major outcome of the meeting was a shared goal to increase bilateral trade to $25 billion by 2030. This is a significant jump from the current trade levels of around $16.46 billion recorded in 2025-26. The enhanced partnership indicates a higher level of strategic coordination between India and Vietnam, particularly in the Indo-Pacific region.
Strategic coordination
New framework will take India-Vietnam cooperation higher
PM Modi said the new framework would take India-Vietnam cooperation to "higher goals," expanding collaboration across connectivity, culture, and capacity building. Vietnam was India's first Comprehensive Strategic Partner in ASEAN a decade ago. To support the new trade target, both sides signed 13 agreements across multiple sectors during their meeting on Wednesday.
Financial collaboration
RBI, State Bank of Vietnam ink agreement
A key development was an agreement between the Reserve Bank of India (RBI) and the State Bank of Vietnam to promote digital payments integration, including QR-based transactions. This move is aimed at facilitating cross-border commerce and tourism flows between the two countries. Both nations also agreed to bolster cooperation in rare earth minerals for building resilient supply chains for industries like semiconductors and electric vehicles (EVs).
Strategic defense
Expanded partnership includes defense and security cooperation
The new partnership also emphasizes defense and security cooperation. India and Vietnam have agreed to deepen collaboration in maritime security, defense procurement, and manufacturing. The talks also included cooperation in peaceful nuclear energy, space technology, and next-generation telecommunications such as 6G. This expanded partnership is part of India's broader Act East policy while enhancing regional security cooperation in Asia.