India, Vietnam elevate ties; set $25 billion trade target by 2030, sign 13 pacts across key sectors

India and Vietnam on Wednesday elevated their bilateral relationship to an Enhanced Comprehensive Strategic Partnership, signalling a sharper economic and geopolitical alignment as both nations seek to expand trade and strategic cooperation in a rapidly evolving Indo-Pacific landscape.

The decision followed delegation-level talks between Prime Minister Narendra Modi and Vietnamese President To Lam in New Delhi, during which the two sides also signed 13 agreements spanning digital payments, rare earth minerals, pharmaceuticals, education, banking, tourism and cultural exchanges.

Highlighting the economic momentum, Modi said, “Over the past decade, bilateral trade between India and Vietnam has doubled to reach USD 16 billion. We have now set a target to take this to USD 25 billion by 2030.” The trade push is expected to be driven by deeper integration in supply chains, fintech collaboration, and critical mineral partnerships.

Calling Vietnam a strategic anchor in India’s regional outreach, Modi said, “Vietnam is a key pillar of India’s Act East Policy and Vision Mahasagar. Building on a strong foundation of civilisational ties, our partnership has seen rapid and comprehensive progress across trade, technology and tourism.”

Strategic, defence ties gain traction

Beyond commerce, the upgraded partnership reflects growing convergence on security and regional stability. Both sides discussed the Indo-Pacific situation, particularly in the context of rising geopolitical tensions, and reiterated their commitment to rule of law, peace and stability.

“Through our strengthening defence and security cooperation, we will continue to contribute to peace, stability and prosperity in the Indo-Pacific region,” Modi said.

The two countries have steadily expanded defence engagement, including a framework agreement signed last year on submarine search and rescue cooperation and a broader push towards defence industry collaboration.

President To Lam, on his first state visit to India after assuming office, emphasised the intent to deepen political trust and security ties, while also boosting economic engagement.

New-age sectors, connectivity in focus

The agreements signed on Wednesday reflect a forward-looking agenda, with a strong focus on digital and emerging sectors. Key pacts include collaboration between the Reserve Bank of India and the State Bank of Vietnam on digital payments and financial innovation, and linkages between NPCI International and Vietnam’s NAPAS for cross-border QR-based payments.

In the critical minerals space, cooperation between IREL (India) Ltd. and Vietnam’s Institute for Technology of Radioactive and Rare Elements aims to strengthen supply chains for rare earths—seen as vital for electronics and clean energy ecosystems.

Modi underscored the broader economic context, stating, “In a period of global upheaval and economic challenges, India and Vietnam are emerging among the fastest-growing economies, driven by strong governance, reforms and talent.”

With Vietnam also joining the Indo-Pacific Oceans Initiative and both sides announcing steps to enhance agricultural trade and tourism, the upgraded partnership is expected to anchor deeper integration between India and ASEAN in the coming years.