Vietnam, India economic cooperation to thrive following strengthening of strategic partnership

Prime Minister Pham Minh Chinh's state visit to India from July 31 to August 1 produced practical outcomes. On August 1, Vietnam and India issued a joint statement regarding strengthening their comprehensive strategic partnership (CSP), encompassing economic and technology cooperation.

Accordingly, PM Chinh and his Indian counterpart Narendra Modi agreed to further elevate trade from the present level of around $15 billion. Both sides also agreed on the need for closer cooperation to remove trade barriers with a view to facilitating and enhancing bilateral trade. They concurred that the ongoing review of the ASEAN-India Trade in Goods Agreement should generate a more user-friendly, simple, and trade facilitative regime for both countries.

The leaders agreed to continue efforts to promote investment flows between the two countries. Vietnam welcomes Indian investment in infrastructure, high technology, source technology, clean technology, IT, the support and manufacturing industries, textiles, the cars and materials industry, green agriculture, smart agriculture, innovation and startups, semiconductors, renewable energy and energy conservation projects, electricity generation, biogas, and polyester fabrics.

Meanwhile, India would welcome investment from Vietnam in agriculture, agro-processing, aquaculture, wood processing, urban development and infrastructure, production of bamboo and forestry products, hospitality and tourism, digital technology, e-vehicles, healthcare, and services. This mutual commitment aims to further strengthen economic cooperation between the two countries.

In addition, India welcomed Vietnam’s decision to join the Coalition on the Disaster Resilient Infrastructure and decision to sign the International Solar Alliance Framework Agreement. Vietnam appreciated India’s Global Bio-fuel Alliance initiative.

As two coastal countries, they agreed to bolster cooperation in oceanography, marine sciences, and the blue economy, as well as in capacity building in this area. The leaders also reiterated their mutually beneficial cooperation in the oil and gas sector, including exploration and production on Vietnam’s continental shelf.

To strengthen their CSP, the two sides agreed to enhance sharing of experiences in building regulations and policies supporting the promotion of e-commerce and the digital economy. Businesses from both sides will take advantage of e-commerce to improve export capacity and participate in regional and global value chains sustainably. They also encouraged relevant government agencies and businesses to explore cooperation opportunities in the green economy, circular economy, digital economy, and critical industries such as rare earth elements, semiconductors, and nano materials.

Regarding innovation and science and technology cooperation, both leaders reiterated the significance of digital technologies and encouraged the development of a framework to promote bilateral cooperation in financial innovation and digital payments between Vietnam and India.

Recognising the needs of both countries for digital transformation and energy transition, the leaders encouraged greater exchanges and cooperation in areas such as digital public infrastructure, space technology applications, renewable energy, biotechnology, and disaster resilience technologies.

The leaders noted with satisfaction the ongoing collaboration in the peaceful use of atomic energy and agreed to intensify follow-ups in various avenues emerging from the third India-Vietnam Joint Committee Meeting on atomic energy.

They also welcomed the progress towards the establishment of an ASEAN-India tracking, data reception station, and data processing facility in Vietnam.

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