India and Vietnam ramp up bilateral trade target
The two nations upgraded their relationship to an ‘enhanced comprehensive strategic partnership’ as their leaders met in New Delhi
India and Vietnam have decided to ramp up bilateral trade between the countries.
A decision has been made to boost trade from $16 billion at present to $25 billion by 2030, Prime Minister Narendra Modi said after a meeting with Vietnamese President To Lam.
Lam, who is accompanied by a high-level delegation, is on a three-day trip to India, his first state visit after being elected president in April.
“Through new initiatives in critical minerals, rare earths, and energy cooperation, we will ensure the economic security and supply chain resilience of both countries,” Modi said.
The two countries have also upgraded their relationship to an ‘enhanced comprehensive strategic partnership’.
Trade between India and Vietnam crossed $16 billion in the fiscal year that ended in March 2026.
Addressing the joint press meet with President of Vietnam, Mr. To Lam.
— Narendra Modi (@narendramodi) May 6, 2026
https://t.co/ILXwDMIxkl
“Vietnam is a key pillar of India’s Act East Policy and Vision Ocean. In the Indo-Pacific region as well, we share a common outlook,” Modi said.
The Indian prime minister also said New Delhi hopes to broaden its relations with the Association of Southeast Asian Nations (ASEAN) with Vietnam’s cooperation.
India’s unified payments interface (UPI) and Vietnam’s fast payment system are also going to be linked soon, Modi informed.
The countries also have exchanged 13 memoranda of understanding (MoUs) across key sectors, including rare earth minerals, culture, cross-border digital payments, health, tourism, and education.
In 2025, India and Vietnam signed an agreement to set up a framework for submarine search, rescue, and support mechanisms. They also signed a letter of intent to strengthen bilateral defense industry collaboration.
The countries are also reportedly holding parleys for a deal related to the purchase of Brahmos missiles, developed by the Indo-Russian joint venture Brahmos Aerospace.