• UGI USER
  • Oct 16, 2023
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Strong and Growing: India-Vietnam Bilateral Relations

Relevance

  • GS Paper 2: India and its Neighborhood- Relations
  • Tags: #Vietnam #VietnamIndiaRelations #UPSCMains2024 #Editorial #CurrentAffairs.

Why in the News?

Dr. Jaishankar unveiled Gurudev Rabindranath Tagore’s bust in Bac Ninh, Vietnam, enhancing the province’s international reputation and strengthening ties with India. He appreciated the wide recognition of Tagore’s works in Vietnam and thanked Bac Ninh’s leaders for their support.

Historical Roots

India and Vietnam share strong historical ties in their common struggle for liberation from colonial rule. Mahatma Gandhi and Ho Chi Minh played significant roles in these struggles.

Diplomatic Relations

  • Early Diplomacy: India initially maintained Consulate-level relations with North and South Vietnams.
  • India played a significant role as the Chairman of the International Commission for Supervision and Control (ICSC) formed in compliance with the Geneva Accord of 1954, aimed at facilitating the peace process in Vietnam.
  • Establishing Diplomatic Relations: Full diplomatic relations between India and unified Vietnam were established on January 7, 1972.

Strategic Partnership

  • In July 2007, the bilateral relations were elevated to a ‘Strategic Partnership’ during Vietnam’s Prime Minister Nguyen Tan Dung’s visit to India.
  • Comprehensive Strategic Partnership: In 2016, during Prime Minister Modi’s visit to Vietnam, their relations were further elevated to a “Comprehensive Strategic Partnership.”

India-Vietnam Defence Cooperation

  • Both nations have signed multiple defence agreements, with a 2009 MoU on Defence Cooperation facilitating joint military exercises, anti-piracy efforts, and anti-insurgency training.
  • India and Vietnam have actively expanded maritime collaboration, evident in the South China Sea passage exercise (PASSEX), underpinning regional security.
  • The “India-Vietnam Joint Vision for Peace, Prosperity, and People,” announced in December 2020, directs their defence partnership, emphasizing security cooperation for Indo-Pacific stability.
  • Vietnam inked its 1st mutual logistics support deal with India in December 2020, simplifying the procurement of logistical equipment and support.
  • Reports suggest India’s potential sale of BrahMos missiles to Vietnam, valued at $625 million, will fortify Vietnam’s coastal defence capabilities.
  • India and Vietnam are broadening cooperation in non-traditional security areas, including counter-terrorism, transnational organized crime, and disaster management.

Trade and Economic Cooperation

Bilateral Trade

  • FDI Inflows: Vietnam ranks 97th in terms of FDI equity inflows into India, with a cumulative FDI amount of $5.45 million recorded from April 2000 to March 2023.
  • Vietnam holds a significant position in India’s Act East Policy and the broader Indo-Pacific strategy.
  • Bilateral Trade in 2022-23: In the financial year 2022-23, bilateral trade between India and Vietnam amounted to $14.14 billion. India’s exports to Vietnam reached $5.90 billion, while imports from Vietnam amounted to $8.79 billion.
  • Vietnam is actively seeking to diversify its trade and tap into India’s expanding market.
  • Major Exports to India (Vietnamese): Key Vietnamese exports to India include mobile phones and components, computers, electronic products, chemicals, plastics, rubber, coffee, pepper, and cashew.
  • Major Exports to Vietnam (Indian): Main Indian exports to Vietnam consist of iron and steel products, textile materials, fishery products, corn, pharmaceuticals, pharmaceutical raw materials, and auto spare parts.

India’s Development Partnership with Vietnam

  • Capacity Building: India has a well-established development partnership with Vietnam, significantly contributing to capacity building, Sustainable Development Goals (SDGs), and socioeconomic development within the country.
  • ASEAN Assistance: India extends its assistance to Vietnam within the ASEAN framework, reflecting its commitment to regional cooperation.
  • Mekong Ganga Cooperation (MGC): Under the MGC framework, India initiates Quick Impact Projects (QIPs) in various Vietnamese provinces for community infrastructure These projects, valued at $50,000 each, offer direct benefits to grassroots-level communities.
  • Cham Community Support: India has concluded 7 grant-in-aid projects, amounting to approximately $1.54 million, aimed at assisting the Cham community in Ninh Thuan province.
  • Ancient Cham Monuments: India is providing technical assistance worth $2.25 million for the conservation and restoration of ancient Cham monuments in Quang Nam Province, symbolizing the deep civilizational ties between the two nations.

Cultural Cooperation

  • Swami Vivekananda Indian Cultural Centre (SVCC): The SVCC was established in Hanoi in September 2016, with the aim of fostering a deeper understanding of India and promoting cultural exchanges between the two nations.
  • Youth Delegations: India and Vietnam regularly exchange youth delegations, enhancing cultural ties and promoting mutual understanding.
  • Academic Collaboration: Key centers like the Vietnam Institute for Indian and South-West Asian Studies (VIISAS) and the Centre for Indian Studies at the Ho Chi Minh National Academy of Politics focus on Indian studies and have academic cooperation MOUs with Indian institutions.
  • Encyclopedia of India-Vietnam Cultural Relations: To celebrate the 50th year of diplomatic relations in 2022, India’s Indian Council for Cultural Relations (ICCR) and Vietnam’s Vietnam Academy of Social Sciences (VASS) are collaborating on an Encyclopaedia of India-Vietnam Cultural and Civilizational Relations, highlighting their rich cultural ties.

Buddhism Connecting dot between India and Vietnam

  • Buddhism’s introduction to Vietnam via the maritime Silk Road in the 2nd century CE made it a prominent religion in the region.
  • Both nations follow Mahayana Buddhism, emphasizing the Bodhisattva path and universal compassion.
  • The Mahabodhi Temple in Bodh Gaya, India, where Buddha attained enlightenment, is highly revered by Vietnamese Buddhists.
  • The Bodhi tree, gifted by President Rajendra Prasad to President Ho Chi Minh in 1959, reflects the enduring connections between India and Vietnam.
  • Vietnamese monks’ historical pilgrimages to India have nurtured cultural exchanges, fortifying their shared Buddhist heritage.

Tourism and People-to-People Contacts

  • ASEAN-India Year of Tourism: 2019 was celebrated as the ASEAN-India Year of Tourism, fostering closer tourism ties.
  • Simplified Visa Regime: Both nations have streamlined their visa processes to encourage bilateral tourism.
  • Direct Flights: Direct flights connecting the two countries began in October 2019, strengthening tourism, trade, and business links.
  • Growing Indian Tourists: In the first 10 months of 2022, there was a monthly rise of 51% in Indian tourists visiting Vietnam.

Capacity Building, Training, Scholarships

  • ITEC Training: Vietnam annually receives over 200 training slots under the Indian Technical and Economic Cooperation (ITEC) program, covering civilian, technical, and defense training.
  • Scholarships: Various scholarship programs are offered, including the Education Exchange Program/Cultural Exchange Program (EEP/CEP), Mekong Ganga Cooperation Scholarship Scheme (MGCSS), General Scholarship Scheme (GSS), and scholarships for Buddhist and Sanskrit studies.
  • PhD Fellowships: A PhD fellowship program in collaboration with 23 Indian Institutes of Technology (IITs) for ASEAN countries, including Vietnam, has garnered positive responses.
  • e-ITEC Program: Vietnam is among the countries where India launched the new e-ITEC program in October 2019.

150th Birth Anniversary of Mahatma Gandhi

  • The Embassy of India, in collaboration with Vietnam’s Ministry of Information and Communication and Vietnam Post, launched a commemorative stamp honoring Mahatma Gandhi on Gandhi Jayanti, October 2, 2019.
  • Artificial Limb Fitment Camps: The Embassy of India organized Jaipur artificial limb fitment camps in four Vietnamese provinces, benefiting 1000 individuals.
  • This initiative was carried out under the ‘India for Humanity’ program of the Government of India.

Indian Community in Vietnam

  • The Indian community in Vietnam consists of approximately 5,500 people, including short-term visitors, majority of the community is concentrated in and around Ho Chi Minh City in the southern part of Vietnam.
  • Community members are predominantly professionals employed in various sectors, such as business, IT, hospitality, aviation, and education.
  • Indian Business Chamber (INCHAM), officially recognized by the Government of Vietnam, represents the Indian community and promotes Indian business interests in the country.

The long-term development collaboration between India and Vietnam has aided in strengthening capacities, advanced sustainable development goals, and accelerated socioeconomic growth in the area. The secure cooperation between the two nations has strengthened their bilateral ties and promoted progress in both nations. Together, they can play a vital role in shaping a peaceful and prosperous Indo-Pacific region, fostering economic growth, and ensuring stability.

Source: Ministry of ExternalAffairs, ibef.org, The Hindu

Mains Question

India and Vietnam have been steadily enhancing their strategic partnership in recent years. Analyze the key areas of cooperation and the significance of this partnership in the context of regional security and stability.