New Delhi and Hanoi announced Wednesday the elevation of their bilateral relationship to an Enhanced Comprehensive Strategic Partnership, setting an ambitious bipartisan goal of reaching USD 25 billion in bilateral trade by 2030. The agreement emerged from talks between Prime Minister Narendra Modi and Vietnam President To Lam at Hyderabad House in New Delhi.
Bilateral trade already exceeded USD 16 billion in the fiscal year ending March 2026, representing more than 10 percent year-over-year growth. The new target nearly doubles this figure within four years, signaling deepening economic engagement between Asia’s two fastest-growing economies.
Both nations agreed to expand investment flows across high-technology manufacturing, renewable energy, logistics, electric vehicles, digital services, healthcare, agriculture, aquaculture, and tourism. Market access for agricultural goods advanced with approval for Indian grapes and Vietnamese durians, while pomegranates and pomelos face expedited clearance.
A Memorandum of Understanding between the Reserve Bank of India and the State Bank of Vietnam will enable cross-border digital payments through QR code linkages, supporting tourism and business transactions. The countries also deepened cooperation in emerging technologies including artificial intelligence, 6G, space, nuclear technology, and critical minerals.
Defence procurement and industrial collaboration strengthened, with Vietnam welcoming India’s offer to host a liaison officer at the Information Fusion Centre–Indian Ocean Region in Gurugram. India has implemented 66 quick-impact projects across most Vietnamese provinces, drawing appreciation for grassroots development impact.
Both sides committed to concluding the ASEAN-India Trade in Goods Agreement review, originally signed in 2009, to modernize tariff concessions and address trade imbalances. Supply chain resilience remained a priority, with Vietnam expressing readiness to expand imports from India to support its domestic manufacturing ecosystem.
Modi emphasized cultural linkages as a parallel priority alongside economic and strategic convergence. The partnership reflects growing alignment in the Indo-Pacific amid regional geopolitical shifts.
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