About Us India - Vietnam Relations

Consulate General of India
Ho Chi Minh City
A note on Bilateral Relations
Strong Foundation of Bilateral Relationship: 


India-Vietnam relations have been exceptionally friendly and cordial since their inception.  The two countries have been historically linked through deep cultural bonds, ethical beliefs and their people share similar memories of struggle for liberation from foreign rule and of national struggle for independence. Our political leadership has shared great personal rapport and laid a strong foundation for a partnership which is prospering across all fora.

Pandit Jawaharlal Nehru was one of the first visitors to Vietnam after its victory against the French at Dien Bien Phu in 1954. President Ho Chi Minh visited India in February 1958 on an 11-day State Visit. President Rajendra Prasad visited Vietnam in 1959. Several high-level bilateral visits have taken place since the establishment of full diplomatic relations in January 1972.

Prime Minister Narendra Modi’s visit to Vietnam from 02-03 September 2016, gave a special impetus to the Indian ‘Act East Policy’ as the strategic partnership with Vietnam was elevated to ‘Comprehensive Strategic Partnership’. Some other recent high level visits were:

Visits of Indian leaders:

  • Vice President Shri Hamid Ansari visited Hanoi and Ho Chi Minh City in January 2013 for the closing ceremony of the Year of Friendship to commemorate 40 years of diplomatic relations.
  • President Shri Pranab Mukherjee undertook a State Visit to Vietnam (including HCM City) in September 2014.
  • EAM Smt. Sushma Swaraj visited Hanoi from 24-26 August 2014 to attend the 3rd ASEAN-India Network of Think Tanks Meeting.
  • Raksha Mantri Shri Manohar Parrikar undertook an official visit to Vietnam from 5-7 June 2016.
  • Minister of State for External Affairs General (Dr.) V K Singh visited Vietnam from 20-23 April 2017; he was in HCM City from 21-23 April to participate in the celebrations commemorating 45th anniversary of establishment of diplomatic relations between the two countries (1972-2017).
  • Minister of State for Commerce and Industry, Smt. Nirmala Sitharaman visited Vietnam from 21-23 May 2017 to attend the 3rd RCEP Inter-sessional meeting.
  • Raksha Mantri Smt. Nirmala Sitharaman was in HCM City from 14-15 June 2018.
  • EAM Smt. Sushma Swaraj visited Hanoi from 26-28 August 2018
  • President Shri Ramnath Kovind undertook a State Visit to Vietnam from 18-20 November 2018.
  • Vice President Shri Venkaiah Naidu paid an official visit to Vietnam from 09-12 May 2019.

Visits of Vietnamese leaders:

  • Prime Minister Mr.Nguyen Tan Dung visited India in December 2012 for the India-ASEAN Commemorative Summit.
  • Mr.Le Thanh Hai, Member of Politburo and Party Secretary of the HCMC visited India in March 2013.
  • CPV General Secretary Mr. Nguyen Phu Trong undertook a State Visit to India from 19-22 November 2013.
  • PM Mr.Nguyen Tan Dung undertook a State Visit to India in October 2014.
  • Vietnamese Defence Minister General Mr.Phung Quang Thanh visited India in May 2015.
  • Minister of Defence of Vietnam Sr. Lt. Gen. Ngo Xuan Lich visited India from 3-6 December 2016.
  • Minister of Information and Communication and Chairman of the Vietnam-India Friendship Association Dr. Truong Minh Tuan visited India from 26-29 March 2017.
  • Deputy Prime Minister and Foreign Minister Mr.Pham Binh Minh undertook a bilateral visit to India from 3-5 July 2017 and also attended the IX Delhi Dialogue.
  • Prime Minister Mr.Nguyen Xuan Phuc visited India in January 2018 to attend the ASEAN-India Commemorative Summit and as a Chief Guest at the Republic Day Parade
  • President Mr.Tran Dai Quang paid a State Visit to India from 2-4 March 2018
  • Deputy Minister of Foreign Affairs Mr.Nguyen Quoc Dung, led a high-ranking Vietnamese delegation to attend the 10th Delhi Dialogue in July 2018.

Trade and economic linkages have been identified as a priority by the leaderships of both countries. India’s thrust under the ‘Act 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. Both countries closely cooperate in various regional fora such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO.
Economic and Commercial Relations

  • India’s relations with Vietnam are marked by growing economic and commercial engagement.
  • India is among the top ten trading partners of Vietnam.
  • The official data of Ministry of Commerce in India, shows that the total bilateral trade between India and Vietnam rose 6.53% from US$12.83 billion during April 2017 –March 2018 (Indian Exports US$7.81 billion, Imports US$5.01 billion) to US$ 13.69 billion during April 2018-March 2019 (Indian Exports US$6.50 billion, Imports US$7.19 billion).

Value in US$ Million (Source: DOC, India) 


Period

Exports
(India to Vietnam) 

Imports
(India from Vietnam)

Total Bilateral trade

%age (change / increase)

2015-16

5,266

2,560

7,826

-15.46

2016–17

6,815

3,320

10,135

29.12

2017-18

7,813

5,018

12,831

26.96

2018-19

6,507

7,192

13,669

6.53

  • During the visit of the Party General Secretary H.E. Nguyen PhuTrong to India in November 2013, both sides agreed to increase trade to US$ 15 billion by 2020; this has been reiterated during the visits of Prime Minister of India to Vietnam in September, 2016 and recent visits of Prime Minister Nguyen Xuan Phuc to India in January 2018 and President Tran Dai Quang in March 2018.
  • India and Vietnam are members of the ASEAN India Free Trade Agreement.
  • Garments and textiles, pharmaceuticals, agro-commodities, leather & footwear, engineering and renewable energy have been identified as priority areas for cooperation.
  • Major export commodities from India are machinery and equipment, seafood, pharmaceuticals, cottons of all kinds, automobiles, textiles and leather accessories, cattle feed ingredient, chemicals, plastic resins, products of chemicals, fibres of all kinds, steel of all kinds, fabrics of all kinds, ordinary metals and jewellery and precious stones.
  • Main items of imports from Vietnam are mobile phones and accessories, computers and electronics hardware, machinery and equipments, chemicals, rubber, ordinary metals, wood and wooden products, fibres of all kinds, pepper, means of transport, products of steels, coffee, footwear, products of chemicals and polymers and resins.
  • According to the Foreign Investment Agency, in 2017, India registered 44 fresh projects with total capital of US$151.38 million. As such, India has 169 valid projects with total invested capital of US$756.37 million, ranking 27th among countries and territories investing in Vietnam.
  • India’s investments in Vietnam are around US$ 1.7 billion but are expected to rise in the coming years. According to the Foreign Investment Agency, as of June 2019, India has 233 valid projects with total invested capital of US$913.83 million, ranking 26th among countries and territories investing in Vietnam. The figures from Vietnam do not include Indian investment from third countries. Major sectors of investment are energy, mineral exploration, agro-processing, sugar manufacturing, agro-chemicals, IT and auto components.  
  • Vietnam investment in India: According to the Foreign Investment Agency, Vietnam has six investment projects in India with total investment of US$ 28.55 million. Vietnamese companies have invested in the area of pharmaceuticals, Information technology, chemicals and building materials. Most remarkable project among them is the project of M/s Rohto Mentholantum Vietnam vide Rohto Pharma (India) Pvt. Ltd., in 2011 with total investment of US$22.8 million. 
  • ASEAN-India Free Trade Agreement was signed in August 2009. Viet Nam committed to eliminate 80% of tariff lines by the last year of roadmap in 2021 (71% of tariff lines by 2018 and 9% of tariff lines by 2021), 10% of the remaining tariff lines are to be cut by the end of road map (in 2024), the list of exclusion contains 468 tariff lines of 6 digits (making up about 10% of tariff lines).  India committed to eliminate 80% of tariff lines by 2016 (71% of tariff lines in 2013 and additional 9% of tariff lines by 2016), 10% of tariff lines will finish the partial cut of tax rate by 2019, the list of exclusion accounts for about 10% of tariff lines. Vietnam Government has issued decree no.159/2017 / ND-CP dated 27.12.2017 on Vietnam’s Special preferential import tariffs for implementation of the ASEAN-India trade agreement period 2018-2022.

Direct Flights:  Indigo airlines will launch direct flights between Kolkatta and Vietnamese cities of Hanoi and Ho Chi Minh City in October 2019.  Vietjet Air will commence direct flights between India (New Delhi) and Vietnam (Hanoi and Ho Chi Minh City) in December 2019.
Indian Banks in Vietnam: In November 2012, Reserve Bank of India and State Bank of Vietnam signed a Memorandum of Understanding on banking supervision, creating a good legal frame work for Indian banks and Vietnamese banks to set up branch offices in the respective countries.
The Bank of India Branch Ho Chi Minh City officially inaugurated its first branch in Ho Chi Minh City, Vietnam on July 22, 2016.  The opening Bank of India Ho Chi Minh city branch would cater to the needs of the investment projects as well as exporters and importers of both the countries, it also gives support to small and medium sized enterprises.
Business delegations:

Several business delegations from India and vice-versa, visited each other’s country for participating in business fairs/exhibitions/shows and to promote trade and investment. Some of the major Indian delegations which visited Ho Chi Minh City and Vietnamese delegations to India during 2018 are listed below:

Number of  trade delegations during 2018

A. INDIAN DELEGATIONS TO VIETNAM


S.No.

Date

Event

1.

11 January 2018

43 Indian companies participated in COMPLAST VIETNAM 2018 held at SECC, Ho Chi Minh City from 10-12 January 2018.

2.

9 February 2018

44-Member delegation from Federation of Paper Traders’ Associations of India (FPTA) visited Vietnam from 4-11 February 2018.

3.

14- 16 March 2018

Five Indian companies participated in The 7th International Livestock, Dairy, Meat Processing, and Aquaculture Exposition in Vietnam - ILDEX Vietnam Exhibition 2018 from 14- 16 March 2018 at SECC, HCMC.

4.

20 – 22 March 2018

Thirteen Indian companies participated in Propack Vietnam 2018 (The 13th International Processing and Packaging Exhibition and Conference for Vietnam) from 20-22 March 2018 at SECC, HCMC.

5.

24 March 2018

A busines delegation of rotarians from Southern India Chamber of Commerce and Industry visited HCMC on 24 March 2018.

6.

11-14 April 2018

19 Indian companies participated in SaigonTex 2018 from 11-14
April, 2018 at SECC, HCMC

7.

8 May 2018

Secretary, Ministry of Tourism, Government of India led a delegation of officials and Indian tour operators to organize “Incredible India Road Show’ in HCM City on 8 May.

8.

13-17 May, 2018

A delegation of Officials and farmers from the state of Assam visited Vietnam from 13-17 May, 2018.

9.

16-18 May 2018

14 Indian companies participated in the Food Ingredients 2018 from 16-18 May, 2018 at SECC, Ho Chi Minh City

10.

6June, 2018

Shri K T Rajan, Chairman, Vibrant Tamilnadu Expo, Madurai visited HCMC for promotional road show.

11.

13 -15 June 2018

About 40 Indian companies led by CHEMEXCIL participated in
Coatings Expo Vietnam 2018 at Saigon Exhition and Convention Centre, HCM City (SECC) form 13-15 June, 2018. A few Indian companies also exhibited in the concurrent shows at SECC - Paper Vietnam 2018 (07 companies) and Rubber & Tyre Vietnam 2018 (1 company).

12.

27-28 June 2018

Six Indian companies participated in Denim and Jeans Show held in HCMC from 27-28 June, 2018.

13.

3-6 July 2018

Three Indian companies participated in MTA Vietnam 2018 (Precision Engineering, Machine Tools and Metalworking Exhibition) & Conference held in SECC, HCMC from 3-6 July, 2018.

14.

11-13 July, 2018

Council for Leather Exports  led a group of 30 Indian leather
companies to participate  in the 20th International Shoes & Leather Fair,
July 11-13, 2018, at HCMC.

15.

19 July, 2018

Three Indian companies participated in Vietbeauty 2018 from 19-21 July, 2018 at SECC, HCMC

16.

2-4 August 2018

44 Indian companies participated in MediPharm Expo 2018 held in
HCMC from 2-4 August 2018 at SECC, HCMC.

17.

08-11 August 2018

48 Indian companies led by ASSOCHAM participated in Vietfood and Beverage
Propack 2018 from 08-11 Aug 2018 at SECC, HCM City

18.

16-18 August 2018

06 Indian companies participated in Security Vietnam 2018 – the 11th International Security, Fire and Safety Exhibition in Vietnam - Secutech Vietnam 2018 from 16-18 August 2018, SECC, HCMC

19.

12-14 September 2018

12 Indian companies participated in the Electric & Power Vietnam -
7th International Power Generation, Transmission, Distribution &
Renewable Energy Exhibiton from 12-14 September, 2018 at SECC,
HCMC

 

20.

11-13 October 2018

06 Indian companies participated in METALEX Vietnam 2018 from 11
13 October, 2018 at SECC, HCMC.

21.

17-19 October 2018

Three Indian companies participated in the VIETSTOCK 2018 EXPO & FORUM at HCMC from 17-19 October, 2018.

22.

21-24 November 2018

12 Indian companies including 09 companies/members of TEXPROCIL
participated in VTG 2018 from 21-24 November, 2018 at HCMC

23.

21-24 November 2018

Five Indian companies participated in the 8th Asia International Dye Industry, Pigments and Textile Chemicals Exhibition (InterDye Asia 2018) at SECC, HCMC from 21-24 Nov. 2018.

24.

28 Nov. – 1st Dec. 2018

EEPC New Delhi participated in the 13th Vietnam Int’l Exhibition on
Industrial Machinery, Equipment, Materials and Products – VINAMAC
EXPO 2018 at SECC, HCMC from 28th Nov. – 1st Dec. 2018.

25.

16-20 December 2018

Confederation of Indian Industry, Tiruppur led a business delegation of Indian textile and garment sector to Vietnam from 16-20 December, 2018.

B. VIETNAMESE DELEGATIONS TO INDIA IN 2018


S.No.

Date

Event

1.

22-23 January 2018

Vietnam Chamber of Commerce and Industry coordinated with
the Confederation of Indian Industry (CII) to lead a business delegation to New Delhi, India to attend ASEAN - India Business and Investment Meet and Expo on 22 – 23 January, 2018

2.

24-25 January 2018

A 03 member group participated in 18thINDIASOFT and INDIA ELECTRONICS EXPO from 24 – 25 January 2018 at Bangalore, organized by the Electronics and Computer Software Export Promotion Council (ESC). The ESC provided  complimentary air tickets
(to and fro economy class ).

3.

7-12 February 2018

Vietnam Plastic Association’s group of 23 members participated in PLASTINDIA 2018 from 07-12 February 2018 at Gandhinagar, Gujarat.

4.

10-14 March 2018

A large delegation from Vietnam attended Elecrama Fair 2018 from March 10 to 14, at the India Expo Mart Greater Noida, Uttar Pradesh

5.

22-24 March 2018

Vietnamese companies participated in CAPINDIA 2018 from 22 – 24 March, 2018 in Mumbai

6.

5-10 August, 2018

An official delegation from Ba Ria Vung Tau Province
Delegation led by Ms Nguyen Thi Yen, Head of the National Assembly
delegation of BRVT province visited Hyderabad from 06-10 August,
2018.

7.

21-23 September 2018

Two Vietnamese companies participated in Source India 2018 under SRTEPC’s hospitality.

8.

4-6 October 2018

One Vietnamese company was approved as a hosted delegate by CHEMEXCIL for attending RBSM ‘INDIA CHEM 2018’ from 4-6 October, 2018 at Mumbai.

9.

24-27 October 2018

A 10 member delegation from Ministry of Agriculture and Rural Development, Vietnam attended the 11th Global Agriculture Summit and Agroworld 2018 in New Delhi at the invitation of the Indian Council of Food and Agriculture.

10.

16- 21 December 2018

An official delegation from Kien Giang Province visited India (New Delhi, Vijaywada and Hyderabad) from 16 – 21 December 2018.

 

 Assistance and Capacity Building:

  • Lines of Credit: Since 1976, India has offered several Lines of Credit (LoCs) to Vietnam over the years on concessional terms and conditions..
  • The 16th LoC for US$ 45 million for Nam Chien hydropower project, executed by BHEL, has been completed. 
  • In July 2013, India extended LoC of US$ 19.5 million for execution of a Nam Trai-IV hydropower project and Binh Bo Pumping station. The Binh Bo project being executed by Kirloskar is nearing completion; the Nam Trai-IV project has had no takers
  • Under 18th LOC for USD100 million, L&T has been selected to build 12 high-speed patrol boats
  • Indian Prime Minister Narendra Modi announced a new US$500 million credit line for deepening bilateral defence cooperation and a grant of US$5 million for constructing an Army Software park in Nha Trang during his visit in September 2016.

Scholarships
Vietnam has been a large recipient of training programmes under Indian Technical and Economic Cooperation (ITEC) programme. Presently, 130 ITEC slots are being offered to Vietnam every year along with 24 scholarships under the General Cultural Scholarship Scheme (GCSS); 4 scholarships announced during PM Modi’s visit to Vietnam in September 2016 for Buddhist and Sanskrit studies, 14 scholarships under the Educational Exchange Programme (EEP) and 10 scholarships under the MGC Scholarship Scheme.  
Quick Impact Projects:

  • India has also been providing assistance to Vietnam within the ASEAN framework. Under the Mekong Ganga Cooperation, India announced a Revolving Fund with an annual contribution of USD 1 million (USD 250,000 per country).  Under this 5 Quick Impact Projects were implemented in the financial year 2016-17, in 5 provinces of Vietnam. The following 5 QIPs were executed in 2018-19. These include (i) Construction of Cau Chua Moi bridge in HoDacKien Commune, Chau Thanh District, Soc Trang Province, Vietnam.  (ii) Construction of Lac Son Primary School, Ca Na Commune, Thuan Nam District of NinhThuan Province (iii) One floor day boarding school canteen with 2 rooms – Bo Ly kindergarten – Tam Dao District-VinhPhuc Province (iv) Block of Classrooms – Van Lung Kindergarten – PhuTho town – PhuTho Province (v) Construction of Kindergarten at Hai Long Commune – Hai Hau District – Nam Dinh Province.

  Assistance to Vietnam within the ASEAN framework:

  • An Inter-Governmental Framework Agreement was signed between the two countries for Exploration and Use of Outer Space for Peaceful Purposes during the visit of Indian Prime Minister Narendra Modi in September 2016.  The Implementing Arrangement between the Indian Space Research Organisation and Viet Nam Ministry of Natural Resources and Environment for Establishment of Satellite Tracking and Telemetry centre in Vietnam under the India-ASEAN Space Cooperation was signed during the visit of Vietnamese Prime Minister Nguyen Xuan Phuc to Delhi in January 2018.
  • A Memorandum of Understanding between Centre for Development of Advanced Computing, Ministry of Electronics and IT, Government of India; and Posts and Telecommunications Institute of Technology (PTIT), Ministry of Information and Communications, Government of Vietnam has been signed for setting up of a sustainable IT infrastructure for advanced IT training under India- ASEAN Cooperation.:(Establishment of a Centre of Excellence for Software Development and Training (CESDT) at PTIT, Ho Chi Minh City).

Cultural Relations and People to People Exchanges: 

  • Conservation and restoration of Cham monuments: The Archaeological Survey of India is executing a conservation and restoration project at the UNESCO heritage site of My Son in Vietnam. The project has highlighted the old linkages of the Hindu Cham civilization between India and Vietnam. A MoU between India and Vietnam was signed on 10 October 2014.  Archaeological Survey of India started the project at My Son in central Vietnam, in end-February 2017. The first working season continued till May 2017 during which the team was able to excavate and preserve many artefacts.  The second working season for ASI team started in January 2018.
  • The Institute for Indian and South-West Asian Studies under the aegis of the Vietnam Academy of Social Sciences was inaugurated in Hanoi on 7 January 2012 on the occasion of the 40th anniversary of establishment of full diplomatic relations. During President Pranab Mukherjee’s State Visit to Vietnam in September 2014, both Presidents inaugurated the Centre for Indian Studies at the Ho Chi Minh National Academy of Politics which is the apex institute for training cadres of the Communist Party of Vietnam. The Department of Oriental Studies, University of Social Sciences and Humaities of Vietnam, has a section on Indian Studies.
  • An Indian Cultural Centre was established in Hanoi in September 2016 and was formally inaugurated on 20th April 2017 by MoS for External Affairs, Dr. V.K. Singh and the Deputy Minister of Culture, Sports and Tourism of Vietnam.
  • There are three Hindu temples, and one mosque in HCM City; all built about a century ago, where devotees/worshippers still line-up to pray & give offerings to the almighty. These are symbols of our close people-to-people links from the past, when the Indian origin people were settled in greater numbers in HCM City; and even today are a point of attraction for Indian/PIO visitors.
  • 5th International Day of Yoga (IDY) was celebrated in 10 Provinces of Vietnam, including Hanoi and Ho Chi Minh City.  IDY celebrations attracted thousands of yoga enthusiasts in all the provinces and events were held during June - July 2019.  The event in HCM City was covered live by popular HTV channel. Yoga is thus defining a new connect between Indian and Vietnamese traditions, as more and more Vietnamese identify with its healing aspects and the number of Yoga centres proliferates in HCM City and other provinces. 
  • In April 2017, during the visit of General (Rtd.) Dr.V K Singh, Minister of State for External Affairs, several cultural events were held in HCM City; including traditional Indian dances, performances by Indian Army Symphony band and launching of the third edition of Veda-Upanishad(Vietnamese translation). ICCR’s Bharatnatyam troupe led by Ms. Srilatha Vinod  enthralled the Vietnamese audience in June 2018.
  • The younger generation of Vietnamese is especially enamoured with bollywood dances and several Indian television serials dubbed in Vietnamese rule the TRP ratings on local TV channels. Though the majority of tourists from Vietnam to India are still attracted by the charm of the ‘Land of Buddha’.

                                                                                                                              
Indian Community:
The estimated population of Indians living in Vietnam is about 3500, mostly in HCMC. The Indian community is vibrant, law-abiding, well-educated and prosperous. There has been a steady increase in the numbers of Indian professionals working in multinational companies in Vietnam as well as Indian tourists. Indian community makes its presence felt by organizing cultural events on the occasions of ‘Holi’, ‘Diwali’ and ‘Onam’  etc. 

Representatives of Indian businesses have knit themselves in an organization called Indian Business Chamber (INCHAM).  INCHAM promotes trade and business interactions as well as leads in organizing the cultural events.
Useful Resources


(September 2019)

Bilateral Relations