India Vietnam agree to enhance trade
The two sides also agreed on measures to boost trade and economic cooperation, including raising bilateral trade above the current level of $15 billion. India and Vietnam on Thursday agreed to enhance defence cooperation for greater stability in the Indo-Pacific region and redouble efforts for freedom of navigation and overflight in the South China Sea in the wake of China’s aggressive actions in the region.
After talks between Prime Minister Narendra Modi and his Vietnamese counterpart Pham Minh Chinh, the two sides also agreed on measures to boost trade and economic cooperation, including raising bilateral trade above the current level of $15 billion, removing trade barriers and establishing an economic diplomacy dialogue.
Vietnam Association of Southeast Asian Nations
Vietnam has emerged as a key partner for India on both trade and security issues among the members of the Association of Southeast Asian Nations (ASEAN). At the same time, Vietnam has tried to strengthen its defence and security ties with India in the backdrop of its territorial disputes with China in the South China Sea.
Speaking to the media after his talks with Chin, Modi said the two sides have adopted a new action plan to strengthen the bilateral comprehensive strategic partnership established in 2016.
New steps have been taken for cooperation in the field of defence and security. The agreement on a $300 million credit line will strengthen Vietnam’s maritime,” Modi said.
Noting that Vietnam is an “important partner” in India’s “Act East” policy and Indo-Pacific vision, Modi said: Our views about the Indo-Pacific region are similar. We support developmentalism, not expansionism.
Vietnam important partner in India’s ‘Act East Policy’
Chin said the two sides will redouble their efforts for peace, stability and development in the South China Sea and work for peaceful resolution of disputes on the basis of respecting international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
We agreed to share information and work together to transform the South China Sea into waters of peace, stability, friendship and cooperation, where security, and freedom of navigation and overflight are upheld,” he said, speaking in Vietnamese.
Chinh proposed that in the area of trade and investment
Chinh proposed that in the area of trade and investment, the two sides should double bilateral trade and investment in the next three to five years, which would require a new mechanism. He said the two sides would establish an economic diplomacy dialogue at the level of deputy foreign minister.
Later, delivering the Sapru House Lecture at the Indian Council of World Affairs, Chinh suggested that the two countries should work on a new trade and economic cooperation agreement. He also invited more Indian investments in key sectors such as infrastructure, air and sea connectivity, and oil and gas.
Agreed on closer cooperation
A joint statement issued by India and Vietnam said the two sides agreed on closer cooperation to remove trade barriers to enhance bilateral trade. They said the ongoing review of the ASEAN-India Trade in Goods Agreement should lead to a more user-friendly, simplified and trade facilitating system.
The joint statement said Vietnam welcomed Indian investments in high technology, IT, manufacturing industry, textiles, semiconductors, renewable energy, while India sought investments from Vietnam in agriculture, aquaculture, wood processing, urban development, production of bamboo and forestry products, digital technology and e-vehicles. Modi and Chinh virtually inaugurated an Army Software Park at the University of Telecommunications in Nha Trang, built with an Indian grant of $5 million.
Digital Transformation Mission for Other Sectors
The facility serves as an IT and foreign language hub and carries out digital transformation missions for the military and other sectors. The two sides finalised two dollar credit line agreements worth $300 million. They also signed seven agreements, including a Memorandum of Understanding (MoU) between the Central Agricultural University in Imphal and the Vietnam Academy of Agricultural Sciences for cooperation in agricultural research and a Memorandum of Understanding (MoU) between the Ministry of Justice of Vietnam and the Ministry of Law of India on cooperation in the legal field.
Conclusion
Modi said the two sides have also decided to focus on cooperation on counter-terrorism and cyber, and an agreement has been reached for digital payment connectivity between the central banks of the two countries. Chin referred to India’s role as the voice of the Global South and said the country’s role and position in the world is constantly growing to contribute to peace, stability, development and prosperity.
Asia and the Indo-Pacific is the engine of growth for the world, but it is also where major power politics is fiercely taking place. He said security challenges, especially interlinked non-traditional security challenges, are becoming even more fierce. We are in a time where opportunities and challenges are intertwined. But there are more challenges than opportunities, Chin said.
