The Prime Minister of Socialist Republic of Vietnam H.E. Pham Minh Chinh was on a three day visit to India from 30th July to 1st July, 2024. He was invited by the Prime Minister of India Narendra Modi. The significance behind this visit is based on the fact that it was the first visit of PM Chinh to India since he became the head of the Vietnamese government, and the first one by a Vietnamese PM to India in a decade. Moreover, this meeting provided an opportunity to both sides to overview their progress, share stances on current regional and international security and identify common areas of interest.
During the meeting both sides have reaffirmed the continual of engagement in traditional areas as well as emerging areas such as electronics, telecommunications, biotechnology, pharmaceuticals, renewable energy, green economy, AI, semiconductors, new materials, and essential minerals. This visit saw the signing of multiple Memorandum of Understanding (MOU) between both nations. The cultural and civilization aspect of their bilateral relations got a new impetus with the signing of a MOU which aims to collaboratively develop the National Maritime Heritage Complex (NMHC) in Lothal, Gujarat. The collaboration on NMHC will involve various aspects to showcase the maritime heritage of both nations. Another milestone was reached as PM Narendra Modi announced a US$300 million loan to enhance Vietnam’s maritime security. It also points at the continuing importance of defence cooperation between both nations. Both sides have also signed the plan of action for the implementation of the “comprehensive strategic partnership” for the period of 2024-2028. This was followed by other couples of MOUs signed in the area of customs capacity building, agriculture, research, education, legal and media cooperation, digital payment connectivity. Furthermore, two credit line agreements each worth US$120 million were exchanged between the Vietnamese Ministry of Finance and Export-Import Bank of India, which is primarily aimed to support various projects in Vietnam.
Both the sides have pledged to continue working on the effective implementation of the India-Vietnam Joint Vision for Peace, Prosperity and People in 2020 and Joint Vision Statement on India-Vietnam Defence Partnership towards 2030 signed in 2022; also marked fifty years of establishment of diplomatic relations between India and Vietnam. In the area of trade and commerce, both sides have vowed to increase their trade volume to US$ 20 billion by 2023. Currently in 2024, their bilateral trade stood at US$ 14.8 billion.
Vital maritime interests and challenges
The significance of this meeting is set on the milieu of maritime security. The loan given to Vietnam to enhance maritime security has come at a crucial juncture. For Vietnam, maritime security encompasses a comprehensive range of traditional and non-traditional aspects. Over the years, Vietnam has been facing the wrath of China’s aggressive behaviour in the South China Sea (SCS). Beijing’s activities ranges from coercive deployment of Chinese patrol vessels, construction and militarization of artificial islands and disruption of energy exploration and fishing activities. The basis of China’s claims on the water and features of the SCS is based on the ‘nine-dash line’, which was declared illegal by the 2016 ruling of Arbitration Tribunal.
Vietnam is having territorial and maritime dispute with China over the Spratly and Paracels Islands. Hanoi has major interests in the SCS. Firstly, protecting it sovereignty, securing its maritime rights over Exclusive Economic Zone (EEZ) and continental shelf and safeguarding its energy exploration activities in the SCS; are some of the top priorities of Vietnam’s maritime strategy. Secondly, upholding freedom of navigation will ensure the smooth functioning of Vietnam’s export oriented economy. Lastly, the importance to uphold maritime security also aids to the ideational aspect of Vietnam’s power, status and influence in the region of Southeast Asia. To be precise, as long as Vietnam continues to assert sovereignty, pursue independent foreign policy choices and freedom of navigation in the SCS; it will act as deterrent against China’s conflict behaviour.
On the other hand, India has critical economic, energy and security interests in the region of Southeast Asia and the SCS. Under India’s Look East Policy, New Delhi’s engagement with the Southeast Asian region was initially through economic cooperation, joint energy exploration projects and connectivity and infrastructure development. The amelioration of India’s Look East policy to Act East Policy have added strategic and security dimension to India’s eastward engagement. The changes in the geopolitical environment with the advent of multiplex world order, ongoing rivalry between US and China and an upsurge in China’s aggressive behaviour in India’s borders and the SCS; have pushed India to pursue a more proactive and multifaceted foreign policy. In addition, India’s strategic location is at the crossroad of the Indian and Pacific Oceans, extensive trade links and its EEZ connects directly with the security environment of its extended neighbouring regions. The importance of SCS for India is based on the fact that it is the only maritime route through which India can continue to maintain its traditional and cultural links with the Southeast Asia. Any kind of disruption in the SCS, will harshly undermine India’s vital interests in the Southeast Asian region.
Given the context, there is convergence of Vietnam and India’s mutual interests in the SCS pertaining to freedom of navigation, rule of law, security, economy and political areas. Intertwined interests also serves as leverage for enhanced ties. Vietnam’s recognises India’s pivotal role and exhorted presence in the Indo-Pacific region. Whereas, Vietnam is regarded as a pivot in India’s Act East Policy. With the state visit of Vietnamese PM Chinh to India, it has boosted the existing dimension of maritime security in their comprehensive bilateral relations. India’s loan to Vietnam will not only ensure capability building but also enable Hanoi to face fierce competition in its vicinity. In addition, India’s presence in the SCS through maritime cooperation will ensure India’s presence and engagement in the region; which is currently undergoing geopolitical changes and challenges. The steadiness of India’s cooperation with Vietnam and the Southeast Asian region at large, will continue to serve the tenets of India’s Act East Policy and Indo-Pacific strategy as well.
