India, Vietnam upgrade ties, set $25 billion trade target by 2030

India and Vietnam on Wednesday upgraded their relationship to an Enhanced Comprehensive Strategic Partnership and set a target of taking annual trade to $25 billion by 2030 after wide-ranging talks between Prime Minister Narendra Modi and Vietnamese President To Lam.

Trade, defence, technology, rare earth minerals and regional security were among the key issues discussed during the meeting as both countries looked to deepen ties at a time of growing geopolitical tensions in the Indo-Pacific.

The two sides also spoke strongly on the South China Sea, stressing the need for peace, stability and freedom of navigation and overflight in the region. They called for disputes to be resolved peacefully and without the “threat or use of force”.

After the talks, India and Vietnam signed 13 agreements covering areas such as digital payments, rare earths, pharmaceuticals, tourism, education, banking and culture.

To Lam, who is also the General Secretary of the Communist Party of Vietnam, is visiting India from May 5 to May 7 along with senior officials and business leaders.

During the visit, he received a ceremonial welcome at Rashtrapati Bhavan, paid tribute to Mahatma Gandhi at Raj Ghat and held delegation-level talks with Modi.

He also met President Droupadi Murmu and addressed events including the Vietnam-India Innovation Forum and the Indian Council of World Affairs.

India accords a warm welcome to General Secretary, President Mr. To Lam of Vietnam. The fact that he has visited India within a month of becoming President and that he has come along with a high-level delegation clearly reflects the priority he attaches to India-Vietnam… pic.twitter.com/NlyBIiOQ7s

— Narendra Modi (@narendramodi) May 6, 2026

The two leaders reviewed the full range of bilateral ties and discussed regional and global developments.

Modi congratulated To Lam on becoming Vietnam’s President, while To Lam praised India’s economic growth and its efforts to strengthen multilateral cooperation and the Global South.

Both sides said stronger India-Vietnam ties would support India’s “Viksit Bharat 2047” vision and Vietnam’s “Vision 2045”.

Trade and investment push

India and Vietnam agreed to push for faster growth in trade, investment and technology partnerships.

Bilateral trade has steadily risen over the last decade, and both sides now want to take it to $25 billion by 2030.

The two countries also agreed to make it easier for agricultural products to enter each other’s markets.

Vietnam has granted market access for Indian grapes, while India has cleared Vietnamese durians. Talks will continue on market access for Indian pomegranates and Vietnamese pomelos.

The leaders discussed expanding cooperation in sectors such as manufacturing, renewable energy, electric vehicles, logistics, IT, healthcare, tourism and agriculture.

They also backed stronger links between startups and innovation centres in both countries.

India and Vietnam also said the review of the ASEAN-India Trade in Goods Agreement should be completed quickly.

Defence and South China Sea focus

Defence and security remained a major focus of the talks.

The two countries agreed to increase cooperation in areas including joint military exercises, maritime security, information sharing, defence production and search and rescue operations.

They also agreed to step up defence procurement between the two countries.

India and Vietnam welcomed progress under India’s defence lines of credit to Vietnam and reviewed existing defence agreements, including logistics support and submarine rescue cooperation.

The leaders also welcomed the first joint hydrographic survey conducted by the two navies off the Vietnamese coast in May 2025 and agreed to continue similar exercises regularly.

Addressing the joint press meet with President of Vietnam, Mr. To Lam.
https://t.co/ILXwDMIxkl

— Narendra Modi (@narendramodi) May 6, 2026

On the South China Sea, both countries backed a free and rules-based Indo-Pacific and stressed the importance of international law, especially the 1982 UN Convention on the Law of the Sea.

They called for non-militarisation, self-restraint and avoiding actions that could worsen tensions in the region.

Digital payments, tech and rare earths

India and Vietnam also decided to deepen cooperation in areas such as artificial intelligence, digital public infrastructure, 6G, biotechnology, pharmaceuticals, space and nuclear technology.

The Reserve Bank of India and the State Bank of Vietnam signed an agreement on financial innovation and digital payments, including plans to link retail payment systems through QR codes.

Both sides also welcomed a new agreement on cooperation in rare earth minerals between IREL (India) Limited and Vietnam’s Institute for Technology of Radioactive and Rare Elements.

Health, tourism and cultural ties

The two countries agreed to expand healthcare cooperation, including the possible participation of Indian pharmaceutical companies in supplying medicines for Vietnamese public healthcare facilities from 2027.

They also discussed cooperation in traditional medicine and Ayurveda.

On tourism and cultural ties, the leaders welcomed the rise in direct flights between the two countries and signed agreements covering tourism cooperation and cultural exchanges for 2026-2030.

Vietnam also thanked India for sending the Holy Relics of Lord Buddha for public exposition in Vietnam during May and June 2025.

The two sides also stressed the importance of labour mobility and welcomed the setting up of a Consular Dialogue mechanism to address related issues.