Thayer Consultancy Background Brief:

ABN # 65 648 097 123

Carlyle A. Thayer
Vietnam’s Relations with
India
September 26, 2020

There is speculation that India’s Prime Minister and Defence Minister will visit Vietnam
before the end of this year. We request your assessment of the following issues:
Q1. What matters are likely to be discussed if this visit take place?
ANSWER: In 2016, Vietnam and India raised their bilateral relations to a
Comprehensive Strategic Partnership (CSP). There is likely to be a general review of
achievements under the CSP and discussion on the next steps forward.
The most recent high-level visits by government leaders was in 2018 when Vietnam’s
prime minister visited India, and the two sides exchanged visits by their presidents.
Vietnam’s President Tran Dai Quang visited New Delhi in March, while India’s
President Shri Ram Nath Kovind visited Vietnam in November.
In April this year, Prime Minister Narendra Modi and Prime Minister Nguyen Xuan
Phuc spoke by telephone and agreed on the guidelines for bilateral relations in 2020.
In August, the foreign ministers of India and Vietnam held the 17th meeting of the Joint
Commission on Economic, Commercial Scientific and Technological Cooperation by
teleconference. They agreed to explore cooperation in marine science, space, civil
nuclear energy, and emerging technologies.
While the time is ripe for a resumption of high-level visits. If Prime Minister Modi and
India’s Defence Minister Rajnath Singh paid a visit to Vietnam amidst the coronavirus
pandemic, it would be a sign of their commitment to strengthen their Comprehensive
Strategic Partnership with Vietnam, particularly in economic and defence relations, in
response to China’s recent confrontational behaviour.
In addition, Prime Minister Modi reportedly is keen to get Vietnam to co-partner one
of the seven pillars in India’s Indo-Pacific Oceans Initiative (IPOI). IPOI was launched
by Modi at the East Asia Summit in Thailand in 2019. IPOI has seven pillars – maritime
security; marine ecology; maritime resources; capacity building and resource sharing;
disaster risk reduction and management; science, technology, and academic
cooperation; and trade connectivity and maritime transport.
The two prime ministers would likely focus their discussions on priority areas already
identified such as combatting and recovering from COVID-19, China and the South
China Sea, oil and gas cooperation, removing technical barriers on Vietnamese exports
to India and raising two-way trade, and joint investment in science and technology,
 2

digital connectivity, space applications, emerging technologies including cyber, civil

nuclear energy, and water resources development in the Mekong Delta.
The two defence ministers would likely review the scope of current defence
cooperation in five areas – military exchanges, professional military education, joint
training exercises, ship visits, and peacekeeping – and identify priorities for the future.
Q2. What can India and Vietnam do to strengthen defence ties? India has offered
Vietnam some credits to buy Indian’s weapons but no signed arms deals have been
reported in the media.
ANSWER: In 2016, India offered Vietnam a $500 million Line of Credit (LOC) to
purchase defence goods. This is separate from two LOCs totalling $400 million that
India offered Vietnam in 2014. According to the Stockholm International Peace
Research Institute (SIPRI), Vietnam purchased four Ocean Patrol Vessels valued at
$100 million. Other sources report that Vietnam purchased from ten to twelve high-
speed Patrol Boats for Vietnam’s Border Guard. Five of the boats will be built in India
and the remainder in Vietnam.
As far back as 2014, Vietnam expressed interest in acquiring the Brahmos cruise
missile co-produced by India and Russia. No progress has been reported publicly
because of Russian reservations.
In 2016, Vietnam expressed interest procuring the Akash surface-to-air missile. More
recently, Vietnam reportedly expressed interest in acquiring India’s Dhruv light
helicopter.
It is likely the two defence ministers would focus on Indian assistance to help Vietnam
strengthen its domestic defence manufacturing industry. Vietnam is reported keen on
co-production. In addition, India’s defence minister is likely to pursue a military logistic
agreement with Vietnam.

Suggested citation: Carlyle A. Thayer, “Vietnam’s Relations with India,” Thayer

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