If there’s one place across the globe where India’s identity under the leadership of Prime Minister Narendra Modi has notably bolstered, it’s undoubtedly Vietnam, which shares a significant cultural bond with us. Witnessing rapid development strides over the past decade, Vietnam has forged a new trajectory of progress, aided substantially by India’s collaboration and support.
Vietnam’s role in strategic balance
Vietnam, facing China’s expansionist policy, finds renewed vigor post-Prime Minister Narendra Modi’s visit. Strategic collaboration with India has significantly curbed China’s economic and strategic challenges. Vietnamese armed forces, bolstered with Indian training, strengthen defense capabilities. Rapid development is evident in Vietnam’s ports. Once confident in Russia’s partnership, Vietnam now places greater trust in India’s alliance, surpassing even its former alliance with the United States.
Shared culture
Vietnam, though communist, is fostering a deepening cultural partnership with India, notably spurred by Prime Minister Narendra Modi’s visit. Indian Foreign Service officer Dr. Madan Mohan Shetty, stationed in Vietnam’s commercial hub, Ho Chi Minh, has diligently built ties across 30 of the country’s states, bolstering relations with local governments. Despite regional influences, Vietnam’s keen interest in India’s cultural heritage has blossomed, evidenced by initiatives such as acquiring and renovating Hindu temples, including a remarkable 9-foot Shiva Linga emerging in the country. Notably, the establishment of a Buddha Stupa, overseen by the Lama of Ladakh, adds to Vietnam’s cultural landscape. Furthermore, an investment MoU signed by Summit India promises to expand projects like the Swayambhu Shivshankar Teerth Kshetra and Buddhism, solidifying the shared cultural heritage between the two nations. The visit of Prime Minister Modi, followed by External Affairs Minister S. Jaishankar’s deployment of adept diplomats like Dr. Madan, has galvanized Vietnam’s enthusiasm for strengthening diplomatic ties, marking a significant milestone in the countries’ relations after decades.
India’s increasing participation in economic progress
Vietnam acknowledges India’s pivotal role in its economic advancement, evident in the significant surge in exports from India to Vietnam in recent years. The two nations boast longstanding trade ties, with bilateral trade set to escalate from a modest US$200 million in 2000 to a projected US$15 billion by 2022. During 2022-2023, bilateral trade is anticipated to reach US$14.70 billion, marking a growth of 3.98%. India’s exports to Vietnam totaled US$5.91 billion, while imports reached US$8.79 billion. Forecasts predict bilateral trade to hit US$15.04 billion in 2022, reflecting a robust growth of 13.92%. Key Indian exports to Vietnam include iron and steel, electrical machinery, auto components, meat and fishery products, among others, while electronics, metals, chemicals, and machinery constitute major imports from Vietnam. Additionally, the Indian diaspora in Vietnam, exceeding 70,000 individuals, actively contributes to the nation’s prosperity, with many running significant businesses. With enhanced facilities such as warehousing for Indian products, Indian businesses in Vietnam stand to benefit substantially. Furthermore, Vietnam presents promising investment opportunities in sectors like railways, education, healthcare, and ports, with the Adani Group making notable strides in these areas.
Changing relations with Vietnam
Vietnam, like the rest of the world, grappled with the economic repercussions of the COVID-19 pandemic. In response, Indian Prime Minister Narendra Modi extended cooperation, providing both medical aid and financial assistance to Vietnam. This gesture strengthened the bond between the two nations, prompting the Vietnamese government to recognize India as a steadfast ally in times of adversity. Consulate General Dr. Madan Mohan’s diplomatic efforts yielded fruitful outcomes, streamlining business cooperation and reducing trade barriers between India and Vietnam.
For India, Vietnam’s support holds significant value as India strives to ascend to the position of the world’s third-largest economy. Recognizing Vietnam as a natural economic partner, India is keen to bolster trade relations further. Consequently, the Vietnamese government intends to prioritize enhancing trade partnerships with India, offering more favorable facilities. With free trade agreements already in place with numerous countries, Vietnam can leverage these arrangements to attract Indian investors and fortify economic ties between the two nations.
Author: Shri Mahesh Verma [Secretary General Summit India]
The above article and the views expressed are those of the author and do not represent the stand and views of TOH News editorial in any manner.
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