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India-Vietnam Enhance Comprehensive Strategic Partnership

  • 03 Aug 2024
  • 10 min read

For Prelims: ASEAN, Renewable energy,Indo-Pacific region, South China Sea, Mekong Ganga Cooperation, VINBAX-2023, MILAN International Maritime Exercise

For Mains: Comprehensive strategic partnership, Look East to Act East, Economic Diplomacy

Source: BL

Why in News?

India and Vietnam have unveiled a new plan aimed at bolstering their bilateral ‘comprehensive strategic partnership’ over the next five years.

  • This initiative was discussed during a bilateral meeting between the Indian Prime Minister and Vietnamese Prime Minister Pham Minh Chinh in New Delhi.
  • The agreement signifies a deepening of ties between the two nations, with a focus on various sectors including trade, digital payments, and defence.

What are the Key Highlights of the Bilateral Meeting?

  • New Plan of Action: India and Vietnam agreed on a new plan of action for their comprehensive strategic partnership established in 2016, which will be implemented over the next five years (2024-2028).
    • Objectives of the plan include strengthening bilateral trade and economic cooperation. Enhancing collaboration in technology and development, and fostering partnerships in defence and security.
  • Digital Payment Connectivity: The PM of India announced that the central banks of both countries reached an agreement to establish digital payment connectivity, enhancing financial transactions between the two nations.
    • Like India, Vietnam is also embracing digital payments, including developing cross-border payment connectivity for retail transactions with other ASEAN countries.
  • Credit Line Extension: India will extend a USD 300 million credit line to Vietnam to support its military security and development projects.
    • The inauguration of an Army Software Park in Nayachang, funded by an Indian grant, and increased cooperation on terrorism and cyber security were highlighted.
  • MoUs Signed: Six Memorandums of Understanding (MoUs) were signed, covering various areas including Agricultural Research, Customs capacity building, Law and justice, Radio & television, and Traditional medicines.
  • Trade and Economic Goals: Vietnam proposed raising annual bilateral trade to USD 20 billion from the current USD 14.8 billion.
  • Strategic Alignment: Both countries committed to strengthening cooperation in the Indo-Pacific region, focusing on maintaining freedom of navigation and overflight in the South China Sea.
  • Economic Diplomacy Dialogue: A new economic diplomacy dialogue will be established at the deputy foreign minister level to address trade and investment issues.

Key Facts About Vietnam

  • Capital: Hanoi, Official Language: Vietnamese.
  • Major Mountain Range: Annam Cordillera.
  • Major Rivers: Mekong River (south) and Red River (north), which form fertile deltas that support the majority of the population and agriculture.
  • Notable Wildlife: Giant catfish, Indochinese tigers, Saola antelopes, and Sumatran rhinos.
    • Deforestation has reduced forest cover to about 19%; government replanting efforts are underway to restore woodlands.
  • Government Structure: Socialist state governed by the Communist Party of Vietnam; a president serves as head of state, while a prime minister runs the government.
  • Economy: Main exports include crude oil, seafood, rice, shoes, wooden products, machinery, electronics, coffee, and clothing.

How has been the India-Vietnam Relations?

  • Historical Ties and Diplomatic Relations: India and Vietnam enjoy a Comprehensive Strategic Partnership.
    • Mahatma Gandhi and President Ho Chi Minh exchanged messages during their independence struggles.
    • India established diplomatic relations with Vietnam in 1972. Relations were elevated to a Comprehensive Strategic Partnership in 2016.
    • The development of India-Vietnam relations are currently guided by a "Joint Vision for Peace, Prosperity and People" adopted in 2020.
    • In 2022, the two countries celebrated the 50th anniversary of the establishment of diplomatic relations and both countries are working together actively to further strengthen their multi-dimensional cooperation.
  • Institutional Mechanisms:
    • The 18th Joint Commission Meeting (JCM) on Economic, Trade, Scientific, and Technological Cooperation was held on 16th October 2023 in Hanoi.
      • Previous JCM meetings, Foreign Office Consultations, and Strategic Dialogues at Secretary-level help review bilateral cooperation.
  • Trade, Economic, and Development Cooperation:
    • Trade Statistics: India-Vietnam trade from April 2023 to March 2024 was USD 14.82 billion.
      • India's exports to Vietnam were USD 5.47 billion, and imports were USD 9.35 billion.
      • The ASEAN-India Trade in Goods Agreement concluded in 2009 provides a preferential trade regime between India and Vietnam and that Agreement is currently under review.
    • Key Exports and Imports:
      • India exports engineering goods, agricultural products, chemicals, pharmaceuticals, electronic goods, minerals, textiles, and plastics to Vietnam.
      • Imports from Vietnam include computer and electronic goods, mobile phones, machinery, steel, chemicals, footwear, garments, and wooden products.
    • Investments: Indian investments in Vietnam are around USD 2 billion, including energy, mineral processing, agro-processing, IT, auto components, pharmaceuticals, hospitality, and infrastructure sectors.
      • Vietnam's investments in India are about USD 28.55 million, primarily in consumer goods, electronics, construction, IT, and pharmaceuticals.
  • Development Partnership: Under the Mekong-Ganga Cooperation framework, India has completed about 45 Quick Impact Projects in over 35 provinces of VietNam, with another 10 projects at the implementation stage.
    • Mekong-Ganga Cooperation (MGC) established in 2000, includes six member countries: Cambodia, Lao PDR, Myanmar, Thailand, VietNam, and India.
    • The cooperation focuses on key sectors: tourism, culture, education, information technology, telecommunications, and transport.
    • India has supported the conservation and restoration of the UNESCO World Heritage site of 'My Son' in Quang Nam Province, Central Vietnam.
  • Defence Cooperation: India and Vietnam have a strong defence and security cooperation, with a 2009 MoU on Defence Cooperation and a 2015 Joint Vision on Defence Cooperation providing the framework.
    • In 2022, the two countries signed a new "Joint Vision Statement on India-Vietnam Defence Partnership towards 2030" and a "Memorandum of Understanding on Mutual Logistics Support".
    • In 2023, Vietnam was gifted an indigenously built missile corvette INS Kirpan.
    • Bilateral military-to-military cooperation includes staff talks, exercises, training, visits, and exchanges.
  • Cultural Exchanges: MoUs between Indian and Vietnamese institutions promote academic and cultural exchanges.
    • Conferences and summits like the Northeast India Festival in Ho Chi Minh City foster bilateral cultural ties.
    • Buddhist links between Vietnam and India represent ancient civilisational connections. Vietnamese Buddhist scholars and pilgrims regularly travel to India, including to the Vietnamese Buddhist pagoda in Bodhgaya.
    • Yoga is immensely popular across Vietnam, with hundreds of yoga clubs and numerous Indian yoga teachers offering their services.
    • The Swami Vivekananda Indian Cultural Centre in Hanoi promotes further understanding of India and fosters closer links between the two countries through various cultural programs and activities.

Drishti Mains Question:

Q. Discuss the significance of the Comprehensive Strategic Partnership established between India and Vietnam

.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. In the Mekong-Ganga Cooperation, an initiative of six countries, which of the following is/are not a participant/ participants? (2015)

  1. Bangladesh
  2. Cambodia
  3. China
  4. Myanmar
  5. Thailand

Select the correct answer using the code given below:

(a) 1 only
(b) 2, 3 and 4
(c) 1 and 3
(d) 1, 2 and 5

Ans: (c)

Q. Consider the following pairs: (2020)

River Flows into
1. Mekong Andaman Sea
2. Thames Irish Sea
3. Volga Caspian Sea
4. Zambezi Indian Ocean

Which of the pairs given above is/are correctly matched?

(a) 1 and 2 only
(b) 3 only
(c) 3 and 4 only
(d) 1, 2 and 4 only

Ans: (c)

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