The growing strategic partnership between India and Vietnam was given a further boost during a visit by the Indian External Affairs Minister S Jaishankar to the country from October 15 to 18.
The two countries have a Comprehensive Strategic Partnership Agreement.
Jaishankar’s visit comes at a time when Vietnam is trying to look for a third option while striking a balance in its relationship with the United States and China.
The US President Joe Biden visited Vietnam in September and preparations are on for an early visit by Chinese President Xi Jinping to the country, either this month or November. Both the US and China have been trying to expand their influence over Vietnam, a key player in the stability of the Indo-Pacific region.
India a third option for Vietnam
Vietnam and India are both concerned about China’s aggressive rise in the region.
Vietnam is engaged in disputes over the Spratly Islands and the Paracel Islands in the South China Sea with China. India has been in a military face-off with China in East Ladakh along the Line of Actual Control since May 2020. In the past, Vietnam has gone to war with both the United States and China. But it has never had any antagonistic relationship with India and in both its wars, received support from the Indian leadership.
Developing strong economic ties with Vietnam has become another incentive for countries as it has turned out to be one of the fastest-growing economies in Asia and an attractive market and investment destination.
Getting to know new Vietnamese leaders
This week’s visit also gave an opportunity to the Indian foreign minister to familiarise himself with the new crop of leaders in Vietnam.
An inner-party struggle in the ruling Vietnamese Communist Party in January led to the ouster of President Nguyen Xuan Phuc and 30 other senior leaders. The purge was initiated by the general secretary of the party Nguyen Phu Trong to consolidate his position against liberals.
During his visit Jaishankar held a series of meetings with the top leaders of Vietnam and discussed ways to boost bilateral cooperation in trade, energy, defence and maritime security. The two sides shared their perspectives on the Indo-Pacific, amidst China’s aggressive behaviour in the strategic region.
Jaishankar called on the Prime Minister, Pham Minh Chinh, and conveyed the greetings of his Indian counterpart, Narendra Modi.
India-Vietnam Joint Commission meeting
The Foreign Minister chaired a Joint Commission meeting with the Vietnamese foreign minister, Bui Thanh Son. He said, “A strong India-Vietnam partnership contributes to a stable, secure and prosperous Indo-Pacific.” The two Foreign Ministers unveiled commemorative stamps celebrating 50 years of the establishment of their diplomatic ties and the people-to-people contact between India and Vietnam.
At the Joint Commission they spoke about cooperation in a wide range of areas like political, defence & maritime security, judicial, trade & investment, energy, development, education & training, science & technology and culture.
Jaishankar said, “Convinced that our Comprehensive Strategic Partnership will only further strengthen over the coming years. “
He added, “Also shared perspectives on the Indo-Pacific region, our commitment to global issues and our collaboration in various multilateral groupings.”
They reaffirmed the importance of maintaining peace and stability for freedom of navigation and aviation, and resolving disputes based on the UN Convention on the Law of the Sea (UNCLOS).
Both sides agreed to boost their trade from the current $14.4 billion to $20 billion soon.
India has invested more than $1 billion in energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agrochemicals, IT and other sectors.
A number of major Indian brands like the Adani Group, Mahindra, SRF, Suzlon, HCL Technology and others are present in Vietnam.
During an address at the Vietnamese Diplomatic Academy, Jaishankar said that the cooperation in the Indo-Pacific region was in the shared interests of India and Vietnam.
China and the US woo Vietnam
The attempts by the US and China to woo Vietnam stem from the rising tension over Taiwan.
The fact that Biden visited Vietnam after attending the G-20 summit in India, bypassing long-time ally Indonesia, showed the growing importance of Vietnam.
Biden signed a Comprehensive Strategic Partnership with Vietnam.
In recent years, the US has become Vietnam’s top export market, worth $127.5 billion. All the major American brands like Apple, Google, Dell, and Microsoft have invested in Vietnam as an alternative to China.
But Vietnam and China maintain strong ties through their respective communist parties.
Chinese Foreign Minister Wang Yi visited Vietnam amid rising tension in the Taiwan Straits in August and sought Hanoi’s support.
Xi Jinping is likely to visit the US in November for the Asia-Pacific Economic Cooperation (APEC) summit. China is Vietnam’s largest trade partner with a bilateral trade volume of over $200 billion.
China is also Vietnam’s third-largest investor, with a total registered capital of $24.87 billion invested in 3,720 projects in the country,
Vietnam is unlikely to choose between the two global rivals as it continues to maintain strong ties with other regional powers.
Both India and Vietnam are trying to expand their options as they try to maintain strategic autonomy.
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