Introduction
The India-Vietnam Enhanced Comprehensive Strategic Partnership (ECSP), upgraded in May 2026, is grounded in shared geopolitical concerns and economic complementarities. The upgrade significantly deepens cooperation across defence, supply chain diversification, critical minerals, and financial and digital connectivity. It also aligns India’s “Act East Policy” and “Developed India @2047” with Vietnam’s “Vision of a developed country by 2045”.
Against this backdrop, the Paper argues that to understand why these two middle powers are deepening their alliances, it is important to study the geopolitical alignments, defence convergences, and economic complementarities between India and Vietnam. Given the changing power dynamics in the Indo-Pacific, the Paper also argues how Vietnam fits into this broader geopolitical balance.
To analyse the argument, the Paper draws on major international relations theories, including ‘Neorealism’, ‘Liberal Institutionalism’ and ‘Constructivism’, and reflects on why and how India and Vietnam are deepening their ties. It also examines the evolution of India-Vietnam relations and the recent upgrade to ECSP. Geopolitical balancing by both countries amid the shift in power in the Indo-Pacific is also highlighted. The Paper further explores key drivers of growth in sectors such as manufacturing, supply chains, critical minerals, human resource mobility and EV manufacturing. Finally, the Paper focuses on the immense potential of tourism and people-to-people exchanges to foster a comprehensive political and economic relationship between the two countries.
Theoretical Framework
Analysing the India-Vietnam Enhanced Comprehensive Strategic Partnership (ECSP), which encompasses robust India-Vietnam relations and critical supply-chain frameworks, requires a multidimensional approach. The Paper uses an international relations theoretical framework to analyse this partnership. The evolution of these multifaceted relations can be evaluated through the lenses of three core international theories: Neorealism, Liberal Institutionalism and Constructivism.
Neorealism highlights the anarchic nature of the international system, in which states seek to maximise security by balancing against rising threats. The primary factors shaping states’ behaviour are the distribution of power and the need to balance against potential hegemonies. From a Neorealist perspective, the India-Vietnam partnership exemplifies external balancing, particularly in response to China’s territorial claims in the South China Sea and its growing assertiveness in the Indo-Pacific. Both countries are prioritising independent foreign policies while strengthening their defence capabilities. Vietnam seeks to enhance its strategic presence by diversifying its diplomatic options through partnerships with a rising Asian power, such as India. By contrast, India uses its deepening defence and maritime ties with Vietnam as a geostrategic lever to project power in response to the rise of an assertive China and the shifting balance of power in the Indo-Pacific.
Liberal Institutionalism holds that even in an anarchic system, absolute gains can be achieved by strengthening institutional engagement. According to this view, states cooperate out of mutual self-interest, facilitated by international regimes, institutions, and economic interdependence. The liberal institutional perspective views ECSP through the lens of institutional networks and economic interdependence. Both nations are concerned not only with security balancing but also with institutional integration and economic partnerships. Bilateral agreements to raise the trade target to USD 25 billion by 2030, digital payment linkages between their central banks, and cooperation on critical rare-earth minerals have highlighted their joint efforts to build resilient supply chains. Institutional collaborations through the Indo-Pacific Oceans Initiative (IPOI) emphasise a shared security architecture, ‘freedom of navigation’, and a ‘rules-based order’ in the South China Sea. These frameworks reduce transaction costs and build long-term trust, making both economies mutually resilient to external threats.
Constructivism emphasises the role of shared ideas, norms, identities, and socialisation in shaping state behaviour. It holds that national interests are not fixed by material power alone but are socially constructed through interaction. According to Constructivism, shared history, civilisational linkages, and anti-colonial solidarity construct a powerful narrative of mutual trust and partnership. India’s ‘Act East’ policy and Vietnam’s integration into the IPOI provide the ideological and normative backbone of their alignment. Both nations share a post-colonial identity as rapidly growing, aspirational societies with complementary national visions – India’s ‘Viksit Bharat 2047’ and Vietnam’s ‘2045 Development Vision’. Their shared commitment to strategic autonomy and to the United Nations Convention on the Law of the Sea (UNCLOS) provides a strong normative foundation for cooperation. Taken together, these factors turn a strategic and security pact, amid fluctuating geopolitical pressures, into a socially constructed partnership.
Evolution of India-Vietnam Relations
The historical connections between India and Vietnam have enriched our ancient literature and mythology. Originating in the 2nd century BCE, these linkages through trade and commerce can be traced back to the establishment of the Champa Kingdom, which flourished in what is now central and southern Vietnam. As a pivotal maritime centre, it has fundamentally shaped the region’s geopolitical landscape in ancient times. Historically, it has played a significant role in shaping the culture, commerce and connectivity between India and Vietnam[1]. It has served as a vital bridge for the transmission of Indian social, political and cultural traditions to Southeast Asia and for forging lasting links with the Indian subcontinent.
These centuries-old ties continue to shape contemporary bilateral relations, forming a civilisational foundation for the strategic partnership between India and Vietnam today. The Hindu Kingdom of Champa and Indian Buddhist philosophy and religion also blended seamlessly with Vietnam’s indigenous belief system. India also provided “crucial moral and political support to Vietnam during its national liberation struggle against France and the United States”.[2]
The foundation of the friendship was laid by India’s first Prime Minister, Jawaharlal Nehru, and Vietnam’s President Ho Chi Minh. As a visionary leader, Ho Chi Minh fought American troops with an unyielding spirit and became a household name in Kolkata, India, through the slogan “Mera Naam Tera Naam, Vietnam–Vietnam” (“My name and your name are the same as Vietnam”), which proclaimed solidarity with the people of Vietnam in their fight against American imperialism[3].
The bilateral ties were upgraded to ‘Strategic Partnership’ in 2007 and to ‘Comprehensive Strategic Partnership’ (CSP) in 2016[4]. A decade of this CSP (2016-26) and 54 years of diplomatic ties (1972-2026) have resulted in the elevation of ties to the‘Enhanced Comprehensive Strategic Partnership’ (ECSP) in 2026.
India and Vietnam have been reported as among the fastest-growing economies in the world. Both countries have achieved sustained economic growth and trade diversification over the past three decades. Vietnam’s ‘Doi Moi’ reforms of the late 1980s and India’s ‘New Economic Policy’ of 1991, both focused on liberalisation, privatisation and globalisation, mark parallel growth trajectories for both countries. Together, the two countries have pursued market-led, export-oriented growth strategies and sought to deepen their integration into regional and global value chains. Given their political histories of reform and complementarities, they have emerged as globally integrated, dynamic economies in the region.
In foreign policy and diplomacy, both India and Vietnam have recast their strategies since the late twentieth century. Economic reforms have led to diversification and greater multilateral engagement in Vietnam. India’s diplomacy in the post-Cold War era has evolved from classical non-alignment to multi-alignment, emphasising strategic autonomy within a rules-based order. Both countries have converged on a strategic outlook of multipolarity and diversified partnerships in a complex, interdependent world.
As two growing economies of the Global South, India and Vietnam have emphasised the importance of addressing shared challenges related to international law and of ensuring the voices and rights of developing countries. Leaders of both countries have also agreed to work closely on regional and international platforms to ‘promote peace, stability, and development’.
During his recent visit, President To Lam called India a “centre of growth and innovation in the world” and discussed linking the “strategic visions and development strategies of both countries to better address the turmoil in the situation of the world today”[5]. As both countries move towards the goal of becoming‘developed countries’ – Vietnam by 2045 and India by 2047 – they share a vision for growth and mutual prosperity. It is fitting to quote Prime Minister Modi’s words, “Together, we will walk, grow, and win”, which reflect the foundational vision for collective development[6].
Towards Enhanced Comprehensive Strategic Partnership
India and Vietnam officially elevated their bilateral relations to an ‘Enhanced Comprehensive Strategic Partnership’ (ECSP) during the State visit of the Vietnamese President, H. E. To Lam to India[7]. The upgrade marks the 10th anniversary of the ‘Comprehensive Strategic Partnership’ signed in 2016, deepening their bilateral cooperation. Both countries have institutionalised a multifaceted partnership in the region, anchored in defence and security cooperation, economic and green transformation, and strategic and regional alignment.
For India, Vietnam is an important factor in its ‘Act-East Policy’ and a significant partner in the ‘Vision MAHASAGAR’. As part of ECSP, Vietnam has announced its intention to join India’s ‘Indo-Pacific Ocean Initiative’ (IPOI). This integration of Vietnam into IPOI will be a strategic milestone for expanding India’s footprint in the regional architecture and enabling Vietnam to pursue geopolitical balancing.
Altogether, India and Vietnam concluded thirteen agreements during the May 2026 visit to India by the President of Vietnam, H. E. To Lam. The agreements cover a wide range of issues, including defence and maritime security; culture and tourism; critical minerals and digital technology; health and pharmaceuticals; trade, commerce and investment; and urban management and development partnership[8].
Both nations aim to reach USD 25 billion in bilateral trade by 2030, with two-way trade currently at around USD 16 billion[9]. While traditional items still dominate the trade basket between India and Vietnam, investments in new technology sectors, including the digital economy, technology and innovation, critical minerals, renewable and green energy, semiconductors, pharmaceuticals, healthcare, space technology, cybersecurity, the blue economy and marine technology, are increasingly significant drivers of bilateral trade growth between India and Vietnam.
Enhanced engagement in both “traditional and emerging areas of defence cooperation and defence systems procurement” between India and Vietnam has been the primary focus of the joint statement issued by the two leaders[10]. Collaboration in “oceanography, including areas such as ocean observing platforms, data management, ocean prediction and services, capacity building and maritime scientific research” has also been emphasised[11].
Digital technologies and critical emerging technologies have also been key themes in the joint statement between the two countries. It focuses on “facilitating greater collaboration and partnership in critical and emerging technology areas such as Digital Public Infrastructure, 6G, Artificial Intelligence, space and nuclear technology, marine sciences, biotechnology, pharmaceuticals, advanced materials and critical minerals. Cooperation will focus on practical initiatives such as joint research, R&D centres, and product development as mutually beneficial.”[12] Under this initiative, “the Reserve Bank of India and State Bank of Vietnam” have agreed to promote financial innovation and digital payments. They have decided to link their respective platforms via QR codes for retail payments to facilitate tourism and business on both sides.
India and Vietnam are deepening bilateral healthcare ties to modernise medical infrastructure. The cooperative framework between the two countries covers digital health transformation, the integration of Artificial Intelligence into medicine, and expanded research into traditional medicine. Both countries have signed a tourism cooperation memorandum and agreed to “promote sustainable two-way tourism, including cultural and heritage, medical and wellness tourism”.[13] They have also committed to strengthening air connectivity and logistics cooperation by expanding direct flights.
To establish institutional linkages and a formal framework enabling India and Vietnam’s largest megacities to collaborate, “a memorandum for the establishment of friendship and cooperation between the Brihanmumbai Municipal Corporation (BMC) in Mumbai and the Ho Chi Minh City People’s Committee in Vietnam has been signed.”[14] As a key pillar of bilateral cooperation and the deepening of people-to-people ties, the joint statement focuses on “greater student, faculty and research exchanges between universities and think tanks of the two countries”. The two countries have also signed a memorandum on “documentation, conservation, digitisation and online dissemination of Cham manuscripts of Indian origin currently preserved in Vietnam”.
India-Vietnam Strategic Balancing
India and Vietnam have officially elevated their bilateral ties to an ‘Enhanced Comprehensive Strategic Partnership’ (ECSP). A core element of this upgraded framework is geostrategic balancing against China’s growing assertiveness in the South China Sea. This aligns with the combination of Vietnam’s maritime frontline position and India’s ‘Act East policy’ and broader Indo-Pacific ambitions.
Vietnam shares a sensitive land border with China and faces complex maritime disputes. It balances these pressures by cultivating deep defence and political ties with major powers. In this endeavour, India is a crucial partner for Vietnam in maintaining its strategic autonomy. For India, a strong Vietnam is a friendly partner in the Indo-Pacific, preventing unilateral domination in Southeast Asia and securing vital sea lanes of communication through which a significant share of India’s global trade flows.
Both nations advocate a ‘free, open, and rules-based’ Indo-Pacific, with strict adherence to the ‘United Nations Convention on the Law of the Sea’ (UNCLOS) and to freedom of navigation. Vietnam has joined India’s ‘Indo-Pacific Oceans Initiative’ (IPOI). This alignment reflects strategic convergence and enables close cooperation with India’s regional maritime architecture without directly forming a formal anti-China alliance.
Defence remains the cornerstone of the partnership between India and Vietnam. The two nations have established a new 2+2 Strategic Defence Dialogue and are focusing on naval interoperability, port calls, defence equipment procurement, capacity building and technology co-production. Both countries are working to enhance defence procurement. This includes advanced negotiations for Indian military exports to Vietnam, such as the BrahMos supersonic cruise missile, which Vietnam seeks to strengthen its coastal defence posture in the South China Sea.
Amid reports that Vietnam is finalising a BrahMos deal with India, a significant shift is underway in the region’s geopolitics. Although Vietnam maintains strong economic relations with China, it has increasingly sought to diversify its defence and strategic partnerships with India. Vietnam’s defence preparedness reflects China’s growing monopoly and hegemonic designs in the South China Sea and its maritime expansion, leading to a changing balance of power in the region. Furthermore, by expanding its BrahMos deal in Southeast Asia (Vietnam being the third country after the Philippines and Indonesia), India is increasing its influence and emerging as a ‘net security provider’, countering China’s hegemony in the region.
Key Economic Drivers and Sector Goals
India and Vietnam are accelerating economic integration under their ‘Enhanced Comprehensive Strategic Partnership’, aiming to “expand the bilateral trade target to USD 25 billion by 2030”. Beyond defence, the two nations aim to build resilient supply chains, enhance bilateral investment, and strengthen cooperation in the digital economy.
Manufacturing & Supply Chains: India and Vietnam are rapidly integrating their manufacturing and supply chains to form a powerful regional “China-Plus-One” alternative. The two manufacturing ecosystems are highly complementary rather than competitive. India, supported by large government programmes such as the Production Linked Incentive (PLI) Scheme, is attracting significant global investment in electronics, pharmaceuticals, and automotive manufacturing. Vietnam is actively diversifying its manufacturing sources and increasing imports of industrial inputs (such as iron, steel, and auto parts) from India to support its export needs. India also hopes to benefit from Vietnam’s highly efficient export processing zones to boost its own “Make in India” initiatives. Both nations are positioning themselves as complementary hubs for American and European businesses restructuring their global supply chains away from China.
Rare Earth and Critical Minerals: India and Vietnam are focusing on rare earths and critical minerals to secure supply chains and reduce reliance on monopolistic markets. This partnership combines Vietnam’s vast rare earth reserves with India’s surging demand and expanding processing capabilities. “Through new initiatives in critical minerals, rare earths, and energy cooperation, we will ensure the economic security and supply chain resilience of both sides.”[15]
The Government of Vietnam has identified “the mining industry, including the rare earth minerals sector, as a priority for development, and has introduced measures to attract foreign investment, such as tax incentives, streamlined procedures for obtaining mining licences, and the establishment of industrial zones dedicated to mining and processing.” The strategic partnership between India and Vietnam on rare-earth elements makes Vietnam a crucial partner for India’s growing industrial and green technology needs. Rare-earth elements are also crucial for achieving “self-reliance and long-term security of the country, as the manufacturing of products across industries such as defence, aerospace, electronics, electrical equipment, including renewable energy, is highly dependent on the rare earth elements.”[16]
Healthcare & Pharmaceuticals: The India-Vietnam healthcare and pharmaceutical partnership is rapidly expanding, driven by India’s position as a global supplier of generic medicines and Vietnam’s growing domestic pharma market. In light of this, Vietnam aims to increase its reliance on Indian companies for cost-effective medicines and drug procurement for its public hospitals. This reflects Vietnam’s commitment to move away from its historical reliance on a single source of supply, cementing India as its most trusted and cost-effective partner for pharmaceuticals and medical equipment. They are also collaborating on traditional medicine, digital healthcare transformation, and AI applications in the health sector.
Human Resource Mobility: India and Vietnam are rapidly deepening their bilateral relationship, with a major focus on human resource mobility and capacity building. As part of the ECSP, both countries view workforce development and human resource mobility as crucial to securing supply chains, driving economic growth, and achieving strategic autonomy in the region. India is one of the largest global exporters of healthcare professionals, including doctors and nurses, as well as highly skilled corporate employees, IT specialists, and technical advisors. Both countries have prioritised knowledge sharing and the integration of startup ecosystems by building corporate networks. In the evolving technology landscape, India’s experienced IT professionals are migrating to and partnering with Vietnam, as the country develops its digital economy and semiconductor industries. We find Indian expatriates frequently working in Vietnam as managers, tech experts, and executives in sectors such as manufacturing, renewable energy, and software.
India’s Consumer Market & The EV Boom: India’s rapidly growing consumer market is highly attractive to Vietnamese companies, particularly in the electric vehicle (EV) sector. Vietnamese EV giant VinFast views India’s market as a major priority, given the local appetite for sustainable and affordable mobility. VinFast is investing USD 500 million to build a large, integrated EV manufacturing plant in Thoothukudi, Tamil Nadu. The facility, which can scale to 150,000 vehicles annually, will allow VinFast to leverage the government’s EV manufacturing ecosystem. It has been reported that “VinFast also plans to establish a nationwide dealer network to build the brand with the commitment of good cars, good prices and excellent after-sales services.”[17] It is also launching a “green and eco-friendly” taxi service in the Delhi-NCR region and expanding its operations to Bengaluru and Hyderabad by the end of 2026[18].
Strengthening People-to-People Exchanges
Cultural and people-to-people ties provide the foundation on which the political and economic partnership thrives. In this regard, India and Vietnam have focused on tourism as a vital pillar of economic growth and cultural integration. The ECSP has focused on cultural, medical and wellness tourism, which will further sustainable tourism opportunities between the two countries.
The flourishing tourism sector has also acted as a catalyst for trade. Low-cost airlines such as Vietjet and IndiGo have rapidly expanded their networks, directly boosting air travel and accelerating investments in hospitality by Indian and Vietnamese conglomerates. Beyond holiday getaways, Vietnam has also emerged as a major hub for meetings, exhibitions and Indian destination weddings. This has led to an influx of Indian tourists, fostering social and cultural familiarity and adaptation. The hospitality sector in Vietnam, including hotels and local tour operators, has adapted by training staff in Indian cultural preferences and opening authentic Indian restaurants, thereby attempting to bridge the cultural gap.
Social media platforms and their feeds have amplified travellers’ wish lists for destinations such as beaches in Da Nang and Phu Quoc, heritage cities like Hoi An and Hue, and the urban landscapes of Hanoi and Ho Chi Minh City. This has shifted Indians’ perception of Vietnam from a historically war-torn country to a vibrant, culturally rich, and affordable luxury destination, an alternative to expensive European holiday destinations.
Given the deep civilisational linkages between India and Vietnam, the two countries have agreed to collaborate on digitising ancient Cham manuscripts and to promote research into their shared civilisational and Buddhist heritage. Committed to deepening academic ties and institutional research, both countries have agreed to enhance educational cooperation and academic exchanges between their institutions. This expansion of people-to-people exchanges has been a major pillar of political cooperation between the two countries, leading to growing trust and a strong public mandate for enhanced diplomatic alignment.
Conclusion
The India-Vietnam ‘Enhanced Comprehensive Strategic Partnership’ is forward-looking. It is a highly ambitious framework rooted in civilisational ties and shared geopolitical interests. Bilateral relations are underpinned by mutual interdependence in a rapidly shifting geopolitical order. Both countries firmly support a ‘free, open and rules-based’ Indo-Pacific. They share security interests to counterbalance regional security concerns and oppose any coercion by any hegemonic power.
Vietnam remains a vital anchor of India’s Act East policy. The partnership has been strengthened by Vietnam’s accession to the IPOI, which aligns with Vietnam’s regional perspective. Under ECSP, the institutionalisation of the 2+2 Defence Dialogue further reinforces the commitment to a ‘rules-based’ security architecture in the region. On the economic front, both countries have set a high bilateral trade target of USD 25 billion by 2030. They are also diversifying supply chains and strengthening digital ecosystems through strategic MOUs covering critical minerals, digital connectivity, urban governance, and fintech. Overall, this partnership serves as a model for Indo-Pacific stability, underpinned by mutual trust and confidence, ensuring economic resilience and security in the maritime domain.
To conclude, it is worth quoting from Prime Minister Modi’s speech, which draws on Lord Buddha’s teaching, “If you light a lamp for someone else, it also illuminates your own path.” Reinforcing this principle, he adds, “By supporting each other’s visions and goals, we will collectively realise our aspirations to become developed nations.”
Author Brief Bio: Prof. Sonu Trivedi is a Distinguished Fellow at the India Foundation. She is also a Professor of Political Science at Zakir Husain Delhi College, University of Delhi.
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