India Vietnam Enhanced Comprehensive Strategic Partnership: $25 Billion Trade Target Set for 2030

India and Vietnam on Wednesday elevated their bilateral ties to an Enhanced Comprehensive Strategic Partnership during Vietnamese President To Lam’s three-day state visit to New Delhi from May 5 to 7, 2026. Prime Minister Narendra Modi and President To Lam announced a USD 25 billion bilateral trade target by 2030 and signed 13 memoranda of understanding covering defence, digital payments, rare earth minerals, pharmaceuticals, and emerging technologies. The upgraded India Vietnam Enhanced Comprehensive Strategic Partnership replaces the 2016 Comprehensive Strategic Partnership framework.

Background of India Vietnam Bilateral Relations

Bilateral trade between India and Vietnam has doubled over the past decade, reaching USD 16.46 billion in fiscal 2025-26, up 10.5 percent year-on-year. Growth has accelerated further in 2026, with two-way trade hitting USD 4.8 billion in the first quarter alone, a 28 percent jump from the same period last year.

Vietnam exported USD 11.6 billion worth of goods to India in FY 2025-26, while Indian exports to Vietnam stood at USD 6.66 billion. The relationship had been categorised as a Comprehensive Strategic Partnership since 2016, and Wednesday’s upgrade reflects a new phase of cooperation amid shifting global supply chains and geopolitical recalibration.

Key Developments Under the India Vietnam $25 Billion Trade Target

The joint statement issued after talks between PM Modi and President To Lam confirmed a new trade goal of USD 25 billion by 2030. Both sides committed to expanding cooperation in high technology, transport, manufacturing, logistics, renewable energy, smart agriculture, electric vehicles, information technology, healthcare, agro-processing, aquaculture, tourism, and hospitality.

Market access for agricultural products received fresh momentum. India will allow imports of Vietnamese durian while Vietnam opens its market to Indian grapes. Both governments agreed to expedite access for Indian pomegranates and Vietnamese pomelos. Vietnam also affirmed its commitment to diversify supply sources and import more from India for domestic production and export needs.

Strategic Cooperation on Rare Earths and Defence Manufacturing

IREL (India) Limited and Vietnam’s Institute for Technology of Radioactive and Rare Elements signed a landmark MoU on rare earth cooperation, underscoring supply chain resilience priorities. Defence cooperation expanded sharply, with both sides agreeing to joint research and co-production of new defence technologies, capacity building, and enhanced defence systems procurement.

Maritime cooperation also deepened. Vietnam will assign an International Liaison Officer at India’s Information Fusion Centre – Indian Ocean Region in Gurugram to strengthen Maritime Domain Awareness in the Indo-Pacific.

Digital Payments and Emerging Technology Partnership

The Reserve Bank of India and the State Bank of Vietnam signed an MoU on financial innovation and digital payments. Separately, NPCI International Payments Limited and Vietnam’s NAPAS will establish cross-border QR code interoperability, allowing seamless retail payments to support tourism and businesses on both sides.

Both leaders welcomed cooperation across emerging technologies including Digital Public Infrastructure, 6G, Artificial Intelligence, space technology, nuclear technology, marine sciences, biotechnology, pharmaceuticals, advanced materials, and critical minerals. India accepted Vietnam’s invitation to participate in its civil nuclear power sector.

Investment Flows and Sector Opportunities

Indian investors held 503 active projects in Vietnam with a total registered capital of USD 1.117 billion as of March 2026, ranking India 26th among 154 source countries. Vietnamese investors currently operate 30 projects in India worth nearly USD 150.5 million.

Vingroup, parent of EV manufacturer VinFast, recently signed an MoU with the Maharashtra government to explore USD 6.5 billion in investments spanning urban development, electric mobility, renewable energy, and public infrastructure. VinFast already operates a manufacturing facility in Thoothukudi, Tamil Nadu.

What India Vietnam Strategic Partnership Means for Indian Businesses

For Indian businesses, the partnership unlocks expanding opportunities across manufacturing, infrastructure, digital economy, pharmaceuticals, logistics, and cross-border services. Vietnam will allow Indian companies to participate in public pharmaceutical procurement tenders from 2027, opening a major new healthcare market.

Tourism is set to surge further, with nearly 750,000 Indian tourists visiting Vietnam in 2025, up almost 50 percent year-on-year. Direct flight expansion, QR-code payment integration, and the planned review of the ASEAN-India Trade in Goods Agreement are expected to drive further commercial momentum. For more startup and policy coverage, follow KnowStartup.

For exporters, manufacturers, and agribusiness firms, monitoring the AITIGA review and sector-specific market access notifications will be critical to capturing first-mover advantages under the upgraded India Vietnam Enhanced Comprehensive Strategic Partnership.

Author

Sachin

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages...

Sachin Sidharth is a Digital Marketing professional with a master’s degree in Digital Marketing from Coventry University, UK. He has 10+ years of blogging and online marketing experience. He currently heads Digital Acquisition for a leading London-based Fintech firm. At KnowStartup.com He focuses on writing Digital Marketing guides and manages KnowStartup's Digital Agency rankings of firms across multiple cities in India. You can reach him on Linkedin.

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