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PIB – May 11 , 2019

INTERNATIONAL RELATIONS

India Vietnam Relations

Context

  • Vice President of India visited Vietnam and holds talks with Vietnam’s Prime Minister on a wide range of issues.
  • Vice President offers India’s expertise in satellite building and other areas; Urges Vietnam to support entry of Indian pharma firms; Inaugurates ‘Jaipur Foot Artificial Limb Fitment Camp’ at Indian Embassy.

Historical Relations

  • India-Vietnam relations have been exceptionally friendly and cordial since their foundations were laid by founding fathers of the two countries – President Ho Chi Minh and President Rajendra Prasad and Prime Minister Nehru.
  • The traditionally close and cordial relations have their historical roots in the common struggle for liberation from foreign rule and the national struggle for independence.
  • Pandit Jawaharlal Nehru was one of the first visitors to Vietnam after its victory against the French at Dien Bien Phu in1954.
  • India’s thrust under the ‘Look East’ policy combined with Vietnam’s growing engagement within the region and with India has paid rich dividends.
  • Vietnam is an important regional partner in South East Asia. India and Vietnam closely cooperate in various regional forums such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO.

Areas of Cooperation

  1. India and Vietnam has committed to enhancing joint co-production in defense (includes Technology transfers).
  2. Together they decided to address the Regional Security issues like Maritime security in Indo-Pacific region, calling for free and open seas by holding a bilateral level maritime security dialogue in early 2019.
  3. Cyber security has also been made a part of Regional security.
  4. India and Vietnam signed a joint statement in March 2018 threecritical agreements-
  • Enhancing trade
  • Agricultural research
  • MoU on Cooperation between the Global Centre for Nuclear Energy Partnership (GCNEP) and Vietnam Atomic Energy Institute (VINATOM) , to enhance training and research collaborations.
  1. Both the countries reiterated the focus given on sub-regionalism and Mekong Ganga Cooperation framework.
  2. Joint exploration for Oil and Gas reserves off the Vietnam coast in South China Sea by ONGC Videsh Ltd (OVL) and PetroVietnam(PVN).
  3. India has committed to a $500 million Credit Line to Vietnam, part of which is sued to procure Offshore Patrol Vehicles (OPVs).

Economic and Commercial cooperation

  • India’s relations with Vietnam are marked by growing economic and commercial engagement. India is now among the top ten trading partners of Vietnam.
  • According to GOI data, total trade between the two countries during April – Nov of fiscal year 2016-2017 was US$ 6244.92 million.
  • The two sides agreed to set the target of bilateral trade at USD 15 billion by 2020.

Defence Cooperation

  • Defence Cooperation has emerged as a significant pillar of our strategic partnership withVietnam.
  • india has provided Vietnam with a $100 million concessional line of credit for the procurement of defence equipment.
  • India has also sold four offshore patrol vessels to Vietnam that is likely to be used to strengthen the country’s defences in the energy-rich South China Sea.
  • The two nations have a stake in ensuring the security of sea lanes, and share concerns about China’s access to the Indian Ocean and the South China Sea.
  • India is helping Vietnam build its capacity for repair and maintenance of its defence platforms.

Science and Technology

  • Science and Technology is an important area of bilateral cooperation.
  • The MoUs/Agreements signed during Prime Minister Modi’s visit to Vietnam on Exploration and Uses of Outer Space for Peaceful Purposes, IT Cooperation, and Cyber Security.
  • The Framework Agreement has also been signed in December on Uses of Atomic Energy for Peaceful Purposes between India and Vietnam.
  • Information Technology is an area with strong growth potential.
  • Indian companies have established their presence in Vietnam for various IT solution and services in the area of banking, telecom, cyber security etc.

Assistance to Vietnam within the ASEAN framework

  • India has set up the Vietnam-India Center for English Language Training in Danangand the Vietnam-India Entrepreneurship Development Centre in Hanoi in as its support to the Initiative for ASEAN Integration providing technical assistance to the Government of Vietnam.
  • A proposal to set up a Centre for Satellite Tracking and Data Reception and an Imaging facility in Vietnam under ASEAN-India Cooperation mechanism is under consideration.
  • The Centre will be fully funded by India and ISRO will be the implementing agency.
  • It will utilise data provided by Indian remote sensing satellites and harness it for multiple developmental applications.
  • An e-learning project for medical training at the Haiphong Medical University has been completed. It is expected to be formally inaugurated in the coming months.

Health Care Sector

  • An area of potential convergence for both Vietnam and India is health care.
  • The 12th National Congress of the Communist Party of Vietnam, in 2016, highlighted the importance of linking economic growth to universal health care, whereby 80% population would be covered by health insurance.
  • India has offered cooperation on health sector to provide high tech health systems and medicines for public health in Vietnam.
  • This will make health services more affordable and reduce the insurance burden on the Government of Vietnam.

Vietnam’s importance for India’s policy to counter China

  • Shared common security perceptions and strategic convergence in Indo-Pacific region propel both the countries to have good defence and security cooperation.
  • India signed an agreement with Vietnam in October 2011 to expand and promote oil exploration in the South China Sea and stood by its decision despite China’s challenge to the legality of Indian presence.
  • Vietnam cited the 1982 United Nations Convention on the Law of the Sea to claim its sovereign right over the two blocks in question.
  • India supported Vietnam’s claims and accepted the Vietnamese invitation to explore the two blocks, the ONGC Videsh Ltd (OVL)).
  • It expressed India’s desire to deepen its friendship with Vietnam, but also ignored China’s warning to stay away.
  • This display of strength stood India in good stead with Vietnam.
  • If China wants to expand its presence in South Asia and the Indian Ocean region, India can do the same thing in East Asia.
  • If China can have a strategic partnership with Pakistan ignoring Indian concerns, India can develop robust ties with states on China’s periphery such as Vietnam without giving China a veto on such relationships.

Way forward

  • Relation roles in the fields of political, economic, strategic field including defence and security which are in the upward trajectory.
  • In the next 5 years, the tri-lateral highway linking India, Myanmar, and Thailand would be ready.
  • The extension of this highway can potentially also open up a scenario where one could drive from Indian soil to Vietnam.
  • India needs to improve economic ties with Vietnam to achieve the set target up to 2020.
  • India must help Vietnam inbuilding their own defence industry, and give them the defence systems that they need to maintain a balance in the South China Sea (SCS) region.
  • Expertsare suggesting that BIMSTEC should consider expanding itself to Vietnam, Laos and Cambodia too.
  • Then it will be a very powerful body and lasting link between India and ASEAN.

 

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