Background:-

Recently Indian President held a three day visit to Vietnam. India and Vietnam agreed to further strengthen bilateral cooperation in defence, peaceful uses of atomic energy and outer space, science and technology, oil and gas, infrastructure development, agriculture and innovation-based sectors. A close ‘ally’ of India for over 70 years, and not limited to official diplomatic ties, Vietnam is critical for India’s foreign policy at the regional and systemic levels.

Vietnam is important for India’s look east policy:-

• Vietnam is a strategic pillar of India’s Act East Policy, and key interlocutor in ASEAN. Over the years, political contacts have strengthened as reflected in several high-level visits by leaders from both sides.
• India’s thrust under the ‘Act East’ policy combined with Vietnam’s growing engagement within the region and with India has paid rich dividends.
• 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.
• Both India and Vietnam possess the capacity to find compatibility in areas promoting defence cooperation and infrastructure simultaneously
• Vietnam, which is under maritime pressure from China’s activities in the South China Sea (SCS), wants India to deepen its military engagement further.
• The India-Vietnam Joint Statement of March 2018 reiterates the focus given to sub-regionalism.
• India’s proposal to improve humanitarian and disaster relief and maritime transportation links found the eager backing of Vietnam, which also supported India’s proposed anti-terrorism measures.
• Mutual trust, threats emerging from a rising China and a convergence of strategic interests have contributed to the deepening of ties between the two nations to an extent that Vietnam now engages India at the level of a ‘comprehensive strategic partner’, which is a clear indication of importance both the nations put in this critical partnership.
• Vietnam ratified the CPTPP, asserting its growing economic impact globally, with exports increasing to approximately $240 billion for the year 2018.
• Membership to the CPTPP, which accounts for nearly 14% of the global GDP, will boost Vietnam’s economic growth, from 6.8 % in 2017-18, by a further 1.1% to 3.5% by 2030 etc.

Common Concerns between the two nations:-

• An area of potential convergence for both Vietnam and India is health care.
• Vietnam has highlighted the importance of linking economic growth to universal health care, whereby 80% population would be covered by health insurance.
• India too, since 2011, has been focussing on the need to deliver accessible and affordable health insurance to weaker sections of society.
• A potential area of convergence in the realm of health care through joint public-private partnership agreements can be explored by the two countries.
• Today there is increasing security concerns in the areas of maritime security and adherence to the United Nations Convention on the Law of the Sea.
• Amid a rapid build-up of Chinese military presence and massive reclamation of submerged features in Southeast Asia, both Vietnam and India are concerned about the balance of power in nautical Asia.

Other concerns:-

Vietnam opposed the “Quad” or quadrilateral coalition among India, the US, Japan and Australia.
The proposed sale of the BrahMos supersonic cruise missile has taken a back seat as there has been no response from Hanoi.
The $ 500 mn line of credit offered in 2016 has yet to be operationalised for facilitating deeper defence cooperation.

Conclusion:-

Based on the three legs of regional security, defence and trade engagements, India and Vietnam have managed to build a strong partnership over the last few years. Given their mutual convergence, it is likely that this relationship will only grow stronger in the coming years as well.