India–Vietnam Deepen Strategic Reset with $25 Billion Trade Goal, Broaden Indo-Pacific Alignment
Vietnamese President To Lam’s maiden state visit to India has pushed India–Vietnam relations into a more ambitious and structured phase, with both sides agreeing to elevate their strategic partnership and set a new bilateral trade target of USD 25 billion by 2030.
The visit, marked by a ceremonial reception at Rashtrapati Bhavan where President Droupadi Murmu and Prime Minister Narendra Modi welcomed the Vietnamese leader, comes at a key moment as the two countries complete 10 years of their Comprehensive Strategic Partnership.
High-level engagement sets a strategic tone
President To Lam began his visit in Bodh Gaya, underscoring the deep civilisational and Buddhist links that continue to anchor the relationship. In New Delhi, discussions moved swiftly into economic and strategic territory, with delegation-level talks held at Hyderabad House between the two leaders.
The Vietnamese President’s visit, his first to India since assuming office in April, also brought a high-level delegation and business leaders, reflecting Hanoi’s clear intent to broaden cooperation across multiple sectors.
Trade expansion becomes the centrepiece
A major outcome of the talks is the agreement to significantly scale up bilateral trade from around USD 16 billion to USD 25 billion by 2030, signalling a sharper economic ambition on both sides.
Prime Minister Narendra Modi outlined a series of measures to support this target, including enhanced regulatory cooperation in pharmaceuticals to improve access to Indian medicines in Vietnam, and smoother export facilitation for agricultural, fisheries, and animal products.
The two sides also agreed to deepen agricultural exchanges. Vietnamese markets will soon see Indian grapes and pomegranates, while India will import fruits such as pomelos from Vietnam. Both countries also committed to updating the India–ASEAN Trade Agreement by the end of the year to strengthen regional trade integration.
Strategic cooperation expands beyond economics
Beyond trade, the visit reinforced a widening strategic partnership. India and Vietnam agreed to expand cooperation in critical minerals, rare earths, and energy, reflecting growing concerns around global supply chain resilience.
Connectivity also featured prominently, with increasing air links between the two countries and efforts to strengthen financial cooperation through engagement between central banks.
Defence and security cooperation remains a key pillar of the relationship, with both sides reiterating their commitment to peace, stability, and a rules-based Indo-Pacific order.
Shared outlook in a shifting regional landscape
India reiterated Vietnam’s position as a key pillar of its Act East Policy and Vision MAHASAGAR, highlighting the country’s importance in New Delhi’s broader Indo-Pacific strategy.
Cultural and civilisational ties also added depth to the discussions, including reference to the strong response in Vietnam when Buddhist relics from India were displayed last year, and ongoing efforts to restore Champa civilisation sites and digitise ancient manuscripts.
India also acknowledged Vietnam’s support in condemning the Pahalgam terror attack, underscoring alignment on security concerns.
