India and Vietnam Sign Mutual Logistics Agreement

In News

• Recently, the Indian defence minister visited Vietnam. 
  • India and Vietnam signed a Joint Vision Statement on “India-Vietnam Defence Partnership towards 2030” during the visit.

More about the visit

• The early finalisation of the $500 million Defence Line of Credit was extended to Vietnam. 
• India and Vietnam also inked a Memorandum of Understanding (MoU) on Mutual Logistics Support. 
• India will gift two simulators and a monetary grant towards setting up of Language and IT Lab at the Air Force Officers Training School for capacity building of the Vietnamese Armed Forces.
• Significance of the visit:
  • The implementation of the projects shall add substantially to Vietnam’s Defence capabilities.
  • It will also push the Indian government’s vision of “make in India, make for the world”.
  • It will significantly enhance the scope and scale of existing defence cooperation, at a time when China is flexing its muscles in the strategic Indo-Pacific region.
  • Vietnam is an important partner in India’s Act East policy and the Indo-Pacific vision.

India-Vietnam Relations

• Historical roots:
  • India and Vietnam, with historical roots in the common struggle against colonial rule and the national struggle for independence, share traditionally close and cordial bilateral relations. 
  • Mahatma Gandhi and Ho Chi Minh, regarded as the Father of Nation in India and Vietnam respectively, led people in their heroic struggle against colonialism in the two countries.
  • India was the Chairman of the International Commission for Supervision and Control (ICSC), which was formed pursuant to the Geneva Accord of 1954 to facilitate the peace process in Vietnam.
  • India initially maintained Consulate-level relations with the then North and South Vietnams and later established full diplomatic relations with unified Vietnam on 7 January 1972.
• Economic ties: 
  • In 1992, India and Vietnam established extensive economic ties, including oil exploration, agriculture and manufacturing.
  • According to Indian statistics, during the Financial Year (FY) April 2020 – March 2021, bilateral trade between India and Vietnam reached US$ 11.12 billion, with Indian exports to Vietnam amounting to US$ 4.99 billion and Indian imports from Vietnam at US$ 6.12 billion. 
  • In FY 2020-21, for India, Vietnam was the 15th largest trading partner globally and the 4th largest within ASEAN, following Singapore, Indonesia and Malaysia.
    • For Vietnam, on the other hand, India was the 10th largest trading partner globally.
• Strategic partnership: 
  • Bilateral relations were upgraded to a “Strategic Partnership” during Vietnamese Prime Minister Nguyen Tan Dung’s visit to India in July 2007, and upgraded to a “Comprehensive Strategic Partnership” during Indian Prime Minister Narendra Modi’s visit to Vietnam in September 2016.
  • This year completes five years of “Comprehensive Strategic Partnership” between India and Vietnam
  • The year 2022 also marks fifty years of diplomatic relations between the two countries.
  • India has also been providing assistance to Vietnam within the ASEAN framework. 
  • China Factor:
    • China aggressively continues to encroach in the territories of the two countries.
    • Hence, it is natural for both the countries to come closer with a view to restrain China from its aggressive actions.
• Defence partnership:
  • Bilateral defence engagements have expanded over a period of time to include wide-ranging contacts between the two countries, including Defence Policy Dialogues, military to military exchanges, high-level visits, capacity building and training programs, cooperation in UN Peace Keeping, ship visits and bilateral exercises.
  • Bilateral military cooperation includes sale of military equipment, sharing of intelligence, joint naval exercises and training in counterinsurgency and jungle warfare.
  • India also regularly deploys its warships for goodwill visits to Vietnamese seas.
• Cultural cooperation:
  • The Swami Vivekananda Indian Cultural Centre (SVCC) was established in Hanoi in September 2016 to promote a comprehensive understanding of India and to foster closer links between peoples of both countries through cultural exchanges. 
  • India is a favored spiritual destination for many Vietnamese because it is home to many famous Buddhist temples, including the Mahabodhi Temple in Bodh Gaya where the Buddha is said to have attained enlightenment.
  • Both countries also have a regular exchange of youth delegations. 

Source: TH