India and Vietnam have agreed to ramp up bilateral trade to an achievable target of US$ 25 billion over the next 10 years, alongside significant investment potential across multiple sectors, including healthcare, defence, maritime affairs, science and technology, among others. This would mark nearly a 50 percent increase from the current US$ 16 billion trade volume, which both countries believe is attainable given that their economies remained among the fastest-growing in the world in calendar year 2025.
Speaking on the occasion, India’s Prime Minister Narendra Modi said, “Bilateral trade between India and Vietnam has doubled over the past decade, reaching US$ 16 billion. Today, we have taken several important decisions to raise this to US$ 25 billion by 2030. An MoU between our drug authorities will enhance access for Indian pharmaceuticals in Vietnam. Exports of India’s agricultural, fisheries and animal products to Vietnam will also become more streamlined. Very soon, Vietnam will enjoy Indian grapes and pomegranates, and we will, in turn, savour Vietnam’s durian and pomelo. Furthermore, we have agreed to update the India-ASEAN Trade Agreement (AITIGA) by the end of the year to strengthen cooperation in new energy, trade and investment.”
Union Minister of State (Independent Charge) for Science and Technology, Jitendra Singh, held bilateral talks with Prof. Dr. Vu Hai Quan, Minister of Science and Technology of the Socialist Republic of Vietnam, in New Delhi, with both sides agreeing to deepen cooperation in emerging technologies, innovation, research and startup ecosystems. The discussions focused on advancing collaboration in artificial intelligence, cybersecurity, deep technologies, semiconductors, robotics, biotechnology, digital technologies and innovation-led research, while also strengthening institutional mechanisms between the two countries in science and technology.
Welcoming the Vietnamese delegation, Singh described India and Vietnam as civilisational partners connected by nearly two thousand years of shared cultural and historical ties. He said the Comprehensive Strategic Partnership between the two countries has gained new momentum over the past decade and acquired greater depth following the visit of Pham Minh Chinh to India in August 2024.
“Vietnam remains an important partner in India’s Act East Policy and Indo-Pacific vision,” Singh said, adding that the growing India-ASEAN engagement in science, technology and innovation provides a strong foundation for collaborative research, innovation and technology-driven growth. “The present engagement offers an important opportunity to further elevate bilateral cooperation in frontier areas of science and technology,” he added.
Vietnam keen on technological collaborationProf. Dr. Vu Hai Quan welcomed the growing engagement between the two countries in science and technology and expressed Vietnam’s interest in developing structured collaboration in deep technologies with practical applications and societal benefits. He proposed nomination of dedicated nodal points from both Ministries for regular coordination and preparation of a concrete action plan to translate bilateral initiatives into implementable outcomes.
The Vietnamese Minister also supported continuation of the Joint Committee mechanism between the two Ministries and informed that Vietnam would nominate a Deputy Minister-level representative to coordinate future engagements with the Indian side. During the discussions, both sides also exchanged views on cooperation in Artificial Intelligence missions, cybersecurity frameworks, innovation ecosystems and technology transfer initiatives. India expressed readiness to share its experiences and best practices in these areas.
The meeting also reviewed ongoing academic and institutional engagements between the two countries, including collaborations involving research institutions, innovation hubs and technology incubation platforms. Discussions covered possibilities for startup exchange programmes, co-innovation centres and industry-linked research partnerships.
India and Vietnam share a strong and expanding partnership under their Comprehensive Strategic Partnership framework, with science and technology emerging as a key pillar of bilateral cooperation. Both sides agreed to maintain regular engagement and work towards translating the outcomes of the bilateral dialogue into concrete collaborative initiatives delivering technological, economic and societal benefits for the people of both countries.
Bilateral tradeAs of FY 2025-26, bilateral trade between the two countries is expected to have exceeded US$ 16 billion, with India exporting approximately US$ 6.11 billion and importing roughly US$ 10.35 billion, focusing on electronics, engineering goods, and agriculture. This marks around 10 percent increase in bilateral trade value from the previous year. India’s key exports to Vietnam include engineering goods (automobile parts, machinery), agricultural products (maize, cotton, meat), and chemicals, and key imports such as electrical/electronic equipment, machinery, plastics, chemicals, and footwear.
Both nations are focusing on deepening ties in critical minerals, renewable energy, and digital technology. In May 2026, 13 new agreements were signed to enhance cooperation, spanning technology and finance. The relationship is seen as a key component of India's "Act East" policy and a vital link in diversifying supply chains in the Indo-Pacific.
Economic, trade and investmentThe two sides agreed to reinforce cooperation between the two rapidly growing economies at the level of governments and businesses for increasing two-way trade, investment and technological partnership. Noting the increase in bilateral trade in the last 10 years, the leaders emphasized the need to further enhance it in a balanced and mutually beneficial manner, and agreed on a new trade goal of US$ 25 billion by 2030.
They decided that both sides will facilitate market access, including for agricultural products in respective countries. They welcomed the decision to grant market access for Indian Grapes and Vietnamese Durians. They also agreed to expedite market access for Indian Pomegranates and Vietnamese Pomelos, by quickly resolving technical issues through expedited bilateral consultations.
Defence and securityThe leaders reaffirmed that defence and security cooperation is a key pillar of the India- Viet Nam Comprehensive Strategic Partnership. They commended the effective implementation of the Joint Vision Statement on India- Vietnam Defence Partnership towards 2030, which continues to guide the growing defence ties between the two countries.
The leaders agreed to further strengthen cooperation and enhance engagements in both traditional and emerging areas of defence cooperation, including defence policy dialogue, joint exercises, staff talks, joint research and co-production of new defence technologies, enhanced port calls by Naval vessels and Air force aircrafts, peacekeeping activities, information sharing, hydrography, defence exhibitions, capacity building, defence industrial cooperation, maritime security, maritime safety, and search and rescue operations based on mutual interest and priorities of the two countries, which will also contribute to greater stability in the wider Indo-Pacific region. They also decided to enhance defence systems procurement between the two countries.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
