Wednesday, 06 May 2026
Wednesday, 06 May 2026
India and Vietnam on Wednesday elevated their relations to enhanced comprehensive strategic partnership and vowed to significantly expand economic and defence ties following talks between Prime Minister Narendra Modi and Vietnamese President To Lam.
Modi said the two countries have a common outlook for the Indo-Pacific and both sides will continue to contribute to the rule-of-law, peace, stability, and prosperity.
It is understood that China's growing military muscle-flexing figured in the delegation-level talks between the two sides.
Lam, accompanied by a high-level delegation, kick-started his three-day trip to India on Tuesday. It is his first state visit to the country since his election as the president this month.
India and Vietnam decided to elevate ties to the level of an enhanced comprehensive strategic partnership, PM Modi said in his media statement.
"Vietnam is a key pillar of India's Act East Policy and Vision Ocean. In the Indo-Pacific region as well, we share a common outlook," Modi said.
"Through our strengthening defence and security cooperation, we will continue to contribute to the rule-of-law, peace, stability, and prosperity," he said.
The prime minister said India will broaden its relations with ASEAN (Association of Southeast Asian Nations) with Vietnam's cooperation.
To boost financial connectivity, we decided to enhance cooperation between the central banks of the two countries, he said.
India's UPI and Vietnam's fast payment system are going to be linked soon, he added.
India is also targeting trade worth $25 billion with Vietnam by 2030, Modi said. "Through new initiatives in critical minerals, rare earths, and energy cooperation, we will ensure the economic security and supply chain resilience of both countries," Modi told reporters.
Trade between India and Vietnam crossed $16 billion in the Indian fiscal year that ended in March 2026.
In his remarks, Lam said both sides agreed to deepen political trust and elevate security cooperation.
Last year, the two sides inked a pact to set up a framework for submarine search, rescue and support mechanism. They also signed a letter of intent (LoI) to strengthen bilateral defence industry collaboration.
