The two nations upgraded their relationship to an ‘enhanced strategic partnership’ when their leaders met in New Delhi.
India and Vietnam have decided to strengthen trade between the two countries.
A decision has been made to increase trade from $16 billion at present to $25 billion by 2030, Prime Minister Narendra Modi said after a meeting with Vietnamese President To Lam.
Lam, who is accompanied by a high-level delegation, is on a three-day trip to India, for him first state visit after being elected president in April.
“Through new initiatives in essential minerals, rare earths, and energy cooperation, we will ensure the economic security and stability of supply of both countries,” Modi said.
The two countries have also upgraded their relationship to an ‘enhanced comprehensive strategic partnership’.
Trade between India and Vietnam crossed $16 billion in the fiscal year ended March 2026.
“Vietnam is an important pillar of India’s Act East Policy and Ocean Vision. In the Indo-Pacific region as well, we have a common vision,” Modi said.
The Prime Minister of India also said that New Delhi hopes to expand its relations with the Association of South East Asian Nations (ASEAN) with the cooperation of Vietnam.
India’s unified payment interface (UPI) and Vietnam’s instant payment system will also be integrated soon, Modi informed.
The countries have also exchanged 13 memorandums of understanding (MoUs) across the country important sectorincluding rare minerals, culture, cross-border digital payments, health, tourism and education.
In 2025, India and Vietnam signed an agreement to establish a submarine search, rescue and assistance system. They also signed a letter of intent to strengthen bilateral defense sector cooperation.
The countries are also reportedly negotiating an agreement regarding the purchase of Brahmos missiles, manufactured by the Indo-Russian joint venture Brahmos Aerospace.
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