NEW DELHI/HANOI (Bloomberg): India and Vietnam agreed to strengthen economic and defence ties as both sides seek to deepen their partnership while tensions persist in the Middle East.
Indian Prime Minister Narendra Modi held talks with Vietnamese President To Lam in New Delhi on Wednesday, with agreements signed across sectors ranging from rare earths to payment systems. The two countries aim to boost bilateral trade to $25 billion by 2030, Modi said at a joint press briefing after the meeting. "Today, we made several key decisions to reach that goal,” he said, standing alongside Lam.
The steps include improving market access for Indian pharmaceuticals and agricultural products in Vietnam, while easing entry for Vietnamese goods into India. "Very soon, Vietnam will enjoy India’s grapes and pomegranates, while India will enjoy Vietnam’s durian and pomelo,” Modi said. Bilateral trade has doubled to about $16 billion over the past decade.
The visit is Lam’s second overseas trip since securing the presidency last month, and he is accompanied by key ministers and a business delegation. He met India’s National Security Adviser Ajit Doval on Tuesday, and the two sides agreed to expand cooperation in areas such as security, artificial intelligence, and energy, according to a statement on the Vietnamese government’s website.
Lam on Wednesday said both nations agreed to "continue to further deepen political trust, step up high-level engagement and increase the effectiveness of existing cooperation mechanisms.” The two sides will also elevate defense and security cooperation to "contribute to strengthening an environment of peace and stability,” he added.
Both countries are seeking to deepen regional ties as relations with Washington remain unpredictable under the Trump administration and the Iran war continues to disrupt trade with the Middle East. Lam, who is also General Secretary, visits just weeks after South Korea’s president traveled to India to strengthen cooperation.
Vietnam is seen as a key partner in India’s "Act East” policy, underpinned by growing defense and economic ties, while the South Asian country is Vietnam’s eighth-largest trade partner.
Indian companies have invested in 473 projects in Vietnam with a total registered capital of $1.1 billion. Vietnamese investment in India has also accelerated, highlighted by VinFast’s electric vehicle factory in Tamil Nadu state and Vingroup’s plan to invest about $6.5 billion in Maharashtra state.
Defense cooperation has increased in recent years through expanded maritime cooperation, joint exercises and capacity-building support. The Indian Navy transferred the indigenously-built missile corvette INS Kirpan to Vietnam in 2023.
The two sides discussed the sale of Indian-made supersonic cruise missiles - BrahMos - to Vietnam, senior diplomat P. Kumaran told reporters in New Delhi. In addition, India has offered Vietnam assistance to repair and maintain its Russian-made fighter jets and its warships. The South East Asian country is buying over a dozen fast attack boats and at least three offshore patrol vessels worth about $300 million from India, he said.
The Southeast Asian country is also seeing record numbers of Indian tourists, with arrivals surging 50% to about 746,000 last year as expanded flight connections boost travel demand.
-- Report from Sudhi Ranjan Sen and Nguyen Dieu Tu Uyen, with assistance from Cao Ban. -- ©2026 Bloomberg L.P.
