India-Vietnam relations have been exceptionally friendly and cordial since their foundations were laid by Prime Minister Nehru and President Ho Chi Minh more than 50 years ago. The traditionally close and cordial relations have their historical roots in the common struggle for liberation from foreign rule and the national struggle for independence.

In recent times, political contacts have strengthened as reflected in several high-level visits by leaders from both sides. Trade and economic linkages continue to grow. India's thrust under the 'Look East' policy combined with Vietnam's growing engagement within the region and with India has paid rich dividends.

Vietnam is an important regional partner in South East Asia. India and Vietnam closely cooperate in various regional forums such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO.

India has also been an active participant in Vietnam’s developmental aspirations. India provides Vietnam around 190 scholarships years under various programmes; which the Vietnamese have actively engaged in. It also trains a large contingent of Vietnam’s civilian and military officials to enhance their administrative and defence capabilities.

In 1982, a major milestone in bilateral relations was reached with the establishment of the India-Vietnam Joint Committee for Economic, Cultural, Scientific and Technological Cooperation to oversee bilateral relations.

Both the countries also have fairly robust economic ties and the bilateral trade stands at USD 8 billion, of which Indian exports to the country is about USD 5.4 billion. Since 1976, India has offered several Lines of Credit (LoCs) to Vietnam over the years on concessional terms and conditions. So far, India has extended 17 LoCs worth more than USD 165 million to Vietnam. The last major LoC extended by India was in July last year for the execution of a hydropower and pumping project

India-Vietnam Dynamics on Defense Front

Due to its estranged ties with China, Vietnam is looking at India for a deeper defence cooperation which includes possible procurement of weaponry besides training especially that of the Navy

India-Vietnam defense cooperation dates to the 1980s and 1990s. Major defense cooperation agreements were signed in September 1994, March 2000 and May 2003. A major turning point was reached in November 2007 when India and Vietnam raised their bilateral relations to a strategic partnership during the official visit to India by Vietnam’s Prime Minister Nguyen Tan Dung. Declaration on Strategic Partnership included thirty-three points and mapped out cooperation in five major areas: political, defense and security; closer economic cooperation and commercial engagement; science and technology; cultural and technical; and multilateral and regional cooperation.

India and Vietnam have convergent security interests, including maximizing their room for maneuver in dealing with China and other major powers within their respective regions. India’s relations with Vietnam provide a basis for a larger Indian role in East Asia, particularly in the maritime domain. For example, India uses its military relationship with Vietnam to apply counter pressure on China for its support for Pakistan.

Defense cooperation is mutually beneficial. India gains from the sale of military equipment, platforms, technology and services to Vietnam. India also benefits from Vietnam’s political support including dialogue partner status with ASEAN, membership in the ASEAN Regional Forum and India’s candidature for permanent membership on the UN Security Council.

India’s sale of arms, equipment, spares, technology and services enhances Vietnam’s ability to modernize its armed forces and strengthen its capacity for the repair and maintenance of air and naval platforms. Vietnam’s defense relations with India lessen its near total defense dependency on Russia.

In 2013 India made the unprecedented offer of a US$100 million line of credit for the purchase of four Offshore Patrol Vessels. This was India’s first offer of credit for the purchase of military equipment to a country outside of South Asia. Another agreement related to the protection of defense-related information. India and Vietnam are reportedly negotiating the sale of the BrahMos cruise missile to Vietnam as well as cooperation in defense co-production.

In a recent visit to Vietnam by India’s EAM Sushma Swaraj reviewed the entire gamut of bilateral ties with the strategically-important country. Putting into play the "Act East Policy" of the New government, a number of key bilateral and regional issues were discussed.

India is already engaged and is committed to continue cooperation with Vietnam and also is looking to expand its cooperation with Vietnam in petroleum sector. Vietnam has offered five oil blocks to India and OVL (ONGC Videsh Limited) is looking at them in terms of their feasibility. Vietnam has renewed India's lease of two oil blocks in South China Sea for another year. China and Vietnam have an acrimonious relationship due to their standoff over the South China Sea, a huge source of hydrocarbons. India has expressed its intent to remain active in oil exploration in the South China Sea, a contentious issue with Beijing, which claims sovereignty over the entire water body.

Recent Visit of President of Vietnam Tran Dai Quang toIndia:

President of Vietnam Tran Dai Quang was in India on a 3 day visit which saw the signing of 3 MoUs on nuclear cooperation, agriculture and trade. Each of these are set to tighten India’s ties in light of its Act East policy. Quang also backed India’s permanent membership in UN Security Council. Recently Prime Minister of Vietnam had also participated in India’s Republic Day Parade in January 2018.

Analysis:

Both the states expressed immense satisfaction on comprehensive strategic partnership. The position in South East Asia has been changing rapidly and the two countries India and Vietnam need to interact at the highest political level from time to time. The recent visit has shown that there are various areas in which the two countries can work together.

India-Vietnam relation has completed about 45 years of diplomatic bilateral relations. Concerns and ambitions of both the countries are quite similar. The relationship has been progressing very well in the past decade and that is why such specific MoUs in fields of nuclear, agriculture have been made.

India has been consistently supporting the Freedom of Navigation, unimpeded flow of commerce and it is supporting Vietnamese and some positions of some other nations in relation to South China Sea. India is adhering to international laws and UN Convention on the Law of the Sea (UNCLOS).

Vietnam supports India’s Act East Policy and it believes that India can do a lot of balancing in South Asia as far as other powers are concerned. India is expected by Vietnam and other South East Asian countries to play a stronger role in the region – on the strategic (Indo Pacific issue) and on the economic side. But, bilateral economic ties and trade need to be improved more between India and ASEAN countries if strategic relations are to be improved. China has relatively better economic relations with South East Asian countries which is a cause of concern for India.

Shared common security perceptions and strategic convergence in Indo-Pacific region propel both the countries to have good defence and security cooperation. Maritime security cooperation was talked in ASEAN India commemorative summit. Vietnam and India have been cooperating in many ways like in Milan exercises. Many other South East Asian countries are also participating in these exercises. India has been providing training to Vietnamese submarines.

Some of the ASEAN countries including Vietnam are interested in building ties with the Quad group (India, US, Japan and Australia). To counter the presence of China which has been rising very rapidly relations with other countries like India and Quad group is important for Vietnam.

Energy sector is a crucial area where much can be done like deals of ONGC with Vietnamese companies. But, China has been raising concerns about this.

Trilateral highway is expected to be ready in the next 5 years between India, Myanmar and Thailand and, its extension to Vietnam would be also a reality. This will help in driving directly from Indian soil to Vietnam.

India and Vietnam have been looking at partners for Oil and Gas exploration which may be Japan, Russia, etc. But, the geopolitics in the region involved may preclude it.

India and Vietnam need to do more in many areas like defence weapons systems, missiles, etc and also in helping Vietnam in establishing their indigenous defence industry.

There are many institutions in Vietnam which study about India. But, such study in India about Vietnam had been lacking. A Centre for Vietnamese study in New Delhi was launched by the president of Vietnam which is quite historic. He also spoke that the relation can be improved not only by interactions by businessmen but also by citizens at large.

Conclusion:

Time bound delivery of specific projects between India and ASEAN countries should be looked at. Relation roles in the fields of political, economic, strategic field including defence and security which are in the upward trajectory. It can be expected that political relations get improved in the coming 5 years when the diplomatic relations complete 50 years between the two nations. But India needs to improve economic ties with Vietnam to achieve the set target up to 2020. Scholars have now been saying that BIMSTEC which has two South East Asian countries namely, Myanmar and Thailand should consider to expand itself to Vietnam, Laos and Cambodia. Then it will be a very powerful body and lasting link between India and ASEAN.