As elsewhere, east is where the ‘Sun’ rises in India. This geographical orientation makes all sense in the geopolitical context too. From looking east, to acting east, New Delhi has steadily added more and more weight to this vision, recognising that its future prosperity lies as much in its eastern neighbourhood as anywhere else.
India and Viet Nam established full diplomatic relations in 1972, and have moved their bilateral relationship to higher ground ever since. From signing foundational agreements in the 1980s on science, technology and cultural exchange, to upgrading their relationship to a Strategic Partnership in 2007, the two countries have steadily built their bond. A defining milestone in the diplomatic journey came in 2016, when under the leadership of Indian Prime Minister Narendra Modi and (then) Vietnamese Prime Minister Nguyen Xuan Phuc, New Delhi and Hanoi elevated their ties to a Comprehensive Strategic Partnership, signalling an expanded focus across domains of collaboration and joint progress.
The relationship between the two Asian nations rests on a diverse set of pillars, including tourism, culture, defence, economy, electronics, and fintech, many of which got further strengthened with the recent state visit of the newly elected General Secretary and President of Viet Nam, To Lam, to India in May 2026, marking the tenth anniversary of the 2016 milestone. In a clear signal of intent, both countries elevated their ties further to an Enhanced Comprehensive Strategic Partnership. The scale of the visit was also reflected in the sizable delegation that General Secretary and President of Viet Nam, To Lam brought along with him, signing a clutch of MoUs covering rare earth minerals, agriculture, pharmacy regulations, culture, and auditing, besides electronics and fintech.
Viet Nam, with its picturesque landscapes, favourable exchange rates, Buddhist monasteries, and serene coastlines, serves as a great tourism destination for India. The country has welcomed over 5L Indian tourists in 2024, a near 300 percent jump from pre-pandemic levels. Reinforcing the cultural and civilisational bond, India exhibited the sacred Buddhist relics, believed to date back to the 3rd century CE, in Viet Nam in 2025, setting yet another cultural benchmark between the two nations.
Given the global reach of payment systems, fintech holds significant potential for growth and innovation. India’s Unified Payments Interface (UPI) has been making waves globally, from France to Dubai, and now to Viet Nam. During the recent state visit, NPCI International Payments Limited (NIPL) and Viet Nam’s National Payment Corporation, NAPAS, agreed to work on cross-border QR code interoperability, bringing real-time, seamless digital transactions within reach for Indian tourists and the Indian community residing in Viet Nam.
More so, Viet Nam has carved out a dominant position for itself in the global electronics and semiconductor landscape. Home to major global semiconductor assembly and testing operations, including Intel’s facility in Ho Chi Minh City, Viet Nam’s electronics ecosystem runs deep and how! With a national semiconductor development strategy, Hanoi is building a structured ambition in chipmaking. India, on the other hand, carries immense strength in semiconductor design, hosting nearly 20 percent of the global semiconductor design workforce. The recently signed MoUs, along with the Viet Nam-India Electronics and IT Business Forum held in March 2026, advance digital technology cooperation between the two countries and foster joint dialogue on co-development and knowledge sharing in semiconductors and deep tech.
Artificial Intelligence is where the next chapter of the India-Viet Nam technology partnership is being written. India, backed by the IndiaAI Mission with an outlay of over Rs 10,000 crore, is building one of the most ambitious AI ecosystems in the world and has already deployed 38,000 GPUs. Viet Nam, meanwhile, is accelerating its AI ambitions, having signed a landmark cooperation agreement with Nvidia in December 2024 to establish an AI research and development centre. With India’s strength in software and data, and Viet Nam’s growing hardware and semiconductor ecosystem, there is great potential for this partnership to make a lasting impact in the global AI & tech landscape.
The trade relationship between the two Asian countries has robustly expanded over the years. Having crossed $16 billion in 2025, New Delhi and Hanoi now aim to take bilateral trade to $25 billion by 2030. India’s registered projects in Viet Nam have grown to over 400, spanning sectors from pharmaceuticals and energy to IT and chemicals. As another fillip to the trade relationship, during the recent visit, both countries agreed to accelerate the conclusion of the ASEAN-India Trade in Goods Agreement (AITIGA) by the end of 2026, which would open up structured trade channels across the region.
Beyond electronics, technology, and trade, the two countries have deepened their defence bonds, guided by the Joint Vision Statement on India-Viet Nam Defence Partnership towards 2030. India has trained and provided Maintenance, Repair and Operations (MRO) support to the Vietnamese military on platforms including the Kilo-class submarines and Sukhoi-30 fighter jets. In addition, both nations have agreed to establish a 2+2 Diplomacy and Defence dialogue mechanism to further elevate the strategic dimension of the partnership.
As Beijing’s increasingly assertive posture in the South China Sea contributes to a strained atmosphere for Southeast Asia, the India-Viet Nam partnership holds significant strategic value as a union of two capable democracies and supports the securing of the critical maritime corridor that carries nearly 50% of India’s overall trade. India’s Vision SAGAR and Viet Nam’s joining of the Indo-Pacific Oceans Initiative (IPOI) further add strategic value to the maritime and regional engagement between the two countries and reaffirm the need for a free, rule-based Indo-Pacific.
As Viet Nam aims to become a high-income country by 2045, and New Delhi takes rapid strides towards ‘Viksit Bharat’ by 2047, their enduring partnership carries immense potential to keep the ‘Suns’ of both nations shining bright even as global headwinds pose a significant threat of ‘overcast’.
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