Vietnam, India Upgrade Ties to Enhanced Comprehensive Strategic Partnership: Highlights for Businesses

During General Secretary and State President To Lam’s state visit to India from May 5 to 7, Vietnamese and Indian leaders agreed to elevate bilateral ties to an Enhanced Comprehensive Strategic Partnership. The Vietnam-India upgraded ties set a bilateral trade target of US$25 billion by 2030, signaling a new phase of cooperation between the two economies.

Find Business Support

Support Economic Development with Asia Trade and Investment Programs

Following talks in New Delhi on May 6, Indian Prime Minister Narendra Modi emphasized both countries’ shared ambition to achieve long-term development goals through deeper strategic and economic cooperation.

The upgraded partnership places greater emphasis on trade, investment, technology, supply chain integration, healthcare, renewable energy, and connectivity, and sets a bilateral trade target of US$25 billion by 2030. For businesses and investors, the agreement signals expanding opportunities across manufacturing, infrastructure, the digital economy, pharmaceuticals, logistics, and cross-border services.

To Lam highlights five key directions in Vietnam-India bilateral relations

During a policy speech at the Indian Council of World Affairs, the Vietnamese President outlined five key directions to advance the Enhanced Comprehensive Strategic Partnership between Vietnam and India. He emphasized a relationship built on shared vision, strategic convergence, and practical cooperation.

Five priorities of Vietnam-India future relations include:

• Strengthening strategic trust and expanding cooperation in defense, security, and multilateral coordination.
• Enhancing connectivity through infrastructure, logistics, digitalization, and regional value chains, alongside greater business and pharmaceutical cooperation.
• Elevating science, innovation, and strategic technology cooperation, particularly in semiconductors, artificial intelligence, and digital transformation.
• Expanding cultural, educational, tourism, and people-to-people exchanges, especially among younger generations.
• Jointly promoting peace, stability, and long-term prosperity in the region through stronger institutional and strategic cooperation.

Key Areas of Vietnam–India Cooperation Under the ECSP

The upgrade of Vietnam–India relations signals a broadening of bilateral cooperation beyond traditional diplomacy and defense into trade, investment, technology, and connectivity. The agreement reflects both countries’ efforts to diversify economic ties and build greater resilience amid shifting global supply chains and geopolitical uncertainty.

Trade, investment, and supply chain integration

Find Business Support

Facilitating seamless market entry and global expansion

Vietnam and India agreed to deepen economic cooperation by strengthening supply chain and global value chain connectivity under a “win-win” framework. The two countries aim to raise bilateral trade turnover to US$25 billion by 2030, up from approximately US$16.4 billion in 2025.

Both sides also committed to removing trade barriers and facilitating greater market access for agricultural products. Vietnam will open its market to Indian grapes, while India will allow imports of Vietnamese durian. Technical discussions are also underway to expand access for Vietnamese pomelo and Indian pomegranate products.

Vietnam further pledged to diversify supply sources and increase imports from India to support domestic production and exports. The two countries will also push for a review of the ASEAN–India Trade in Goods Agreement (AITIGA) to improve regional trade facilitation.

See also: India-EU FTA vs. EVFTA: A Comparative Look at Their Strategic Impact on EU Business Expansion

Energy, infrastructure, and industrial cooperation

The two countries have agreed to encourage high-quality, two-way investment and facilitate large-scale projects involving major corporations from both countries. Priority sectors include infrastructure, renewable energy, pharmaceuticals, and high technology.

Vietnam and India also agreed to expand joint oil and gas exploration and production activities, including India’s participation in new offshore projects in accordance with Vietnamese and international law.

In addition, India welcomed cooperation with Vietnam in fisheries and aquaculture development, including pangasius breeding and mussel procurement activities.

Technology, digital economy, and innovation

Science, technology, innovation, and digital transformation were identified as key growth drivers in the next phase of bilateral relations.

Vietnam and India have agreed to expand cooperation in emerging technology sectors, including digital infrastructure, 6G, artificial intelligence (AI), space technology applications, nuclear technology, marine science, biotechnology, pharmaceuticals, advanced materials, and critical minerals.

Vietnam also welcomed India’s participation in nuclear energy development and agreed to explore suitable mechanisms for continued Indian supply of Cobalt-60 to Vietnam.

To support digital commerce and tourism, both countries will promote connectivity between retail payment systems through QR code integration, facilitating cross-border transactions and consumer payments.

Healthcare and pharmaceutical cooperation

Find Business Support

Enabling health sciences innovation across jurisdictions

Vietnam and India agreed to explore mechanisms allowing Indian companies to participate in public pharmaceutical procurement tenders in Vietnam from 2027 onward.

The two sides also proposed establishing cooperation in traditional medicine, including the creation of an Ayurveda department chair program in Vietnam.

Tourism, education, and connectivity

Tourism and people-to-people exchange were identified as important pillars supporting economic growth and bilateral engagement.

The two countries signed a tourism cooperation memorandum and agreed to promote sustainable two-way tourism, including cultural heritage tourism, medical tourism, and wellness travel.

Vietnam and India also committed to strengthening air connectivity and logistics cooperation, while encouraging greater collaboration between local governments, economic centers, and technology hubs. Expanded direct flight routes are expected to support tourism flows, business travel, and commercial exchange.

See also: Vietnam-India New Direct Flight Routes: A Boost to Tourism and Business

Other strategic focuses

Beyond economic cooperation, the upgraded partnership also includes broader collaboration in diplomacy, defense, maritime security, cybersecurity, anti-money laundering, and regional coordination through multilateral platforms such as ASEAN and the United Nations.

The two sides additionally agreed to establish new strategic dialogue mechanisms and continue implementing the Vietnam–India Action Program for 2024–2028.

See also: Vietnam’s Visa for Indian Tourists: A Brief Guide

Agreements signed under To Lam’s state visit

Following the bilateral talks, President To Lam and PM Modi witnessed the signing and exchange of multiple memoranda of understanding (MoU) covering digital technology, critical minerals, healthcare, finance, tourism, culture, education, and local-level cooperation.

Current landscape of Vietnam–India economic ties

Economic cooperation has become an increasingly important pillar of Vietnam–India relations, supported by growing trade flows, expanding investment activity, and stronger industrial cooperation.

Bilateral trade continues strong growth

Bilateral trade between Vietnam and India reached US$16.46 billion in 2025, up 10.5 percent year-on-year. At present, trade activities between the two countries are rising steadily.

Growth momentum accelerated further in early 2026, with two-way trade reaching US$4.8 billion in Q1 2026, a 28 percent increase from the same period in 2025.

Vietnam’s exports to India totaled US$2.9 billion in the first quarter of 2026, rising 25 percent year-on-year, while imports from India reached US$1.8 billion, up 34 percent.

The expanding trade relationship reflects increasing complementarities between the two economies, particularly in manufacturing inputs, agricultural products, energy, and industrial supply chains.

Indian investment in Vietnam expands across sectors

As of March 2026, Indian investors had 503 active projects in Vietnam with total registered capital of approximately US$1.117 billion, ranking India 26th among 154 countries and territories investing in Vietnam.

Find Business Support

Transform Information into Strategy with Tailored Intelligence

Indian investment spans 15 out of Vietnam’s 21 economic sectors, with capital concentrated in:

• Manufacturing and processing: 62 projects worth US$643.3 million, accounting for 54.7 percent of total registered Indian investment;
• Electricity and gas production/distribution: 4 projects totaling US$157 million; and
• Mining: 5 projects with combined registered capital of US$95 million.

Notable Indian-backed projects in Vietnam include:

• Son Hoa Sugar Factory in Dak Lak province with registered investment of US$94.5 million;
• Ngon Coffee Co., Ltd. in Dak Lak with total investment of US$90 million; and
• Infra 1 Solar Power Plant in Khanh Hoa province with investment of nearly US$71.9 million.

Vietnamese investment in India gains momentum

Vietnamese investors currently operate 30 projects in India with a combined investment capital of nearly US$150.5 million, making India the 17th largest destination for Vietnam’s outbound investment.

A major development is Vingroup’s planned electric vehicle manufacturing project in Tamil Nadu, which is expected to significantly deepen Vietnam’s industrial footprint in India. The conglomerate reportedly plans to increase its total investment in India to US$6.5 billion, signaling growing confidence in the Indian market and the broader potential for bilateral industrial cooperation.

New opportunities for investors

Trade, manufacturing, and supply chains

The upgraded partnership is expected to strengthen trade and industrial cooperation between Vietnam and India, with both countries targeting US$25 billion in bilateral trade by 2030.

Key opportunities include:

• Expanded agricultural market access for products such as Vietnamese durian and Indian grapes;
• Greater supply chain and global value chain integration;
• Potential trade facilitation improvements through the review of AITIGA; and
• Increased demand for industrial inputs, manufacturing components, and logistics services.

These developments may benefit exporters, manufacturers, agribusiness firms, and supply chain operators in both markets.

Energy, technology, healthcare, and tourism

Both governments also identified several priority sectors for future investment and business cooperation, including:

• Infrastructure and renewable energy;
• Pharmaceuticals and healthcare procurement;
• AI, 6G, biotechnology, and digital infrastructure;
• Oil and gas exploration activities; and
• Tourism, aviation, and digital payment connectivity.

Vietnam’s plan to allow Indian companies to participate in public pharmaceutical tenders from 2027 may create additional opportunities for healthcare and pharmaceutical businesses. Expanded direct flights and QR-code payment integration could also support tourism and cross-border consumer services.

What businesses should do?

Businesses should closely monitor the implementation of the upgraded partnership and identify areas where policy changes may translate into commercial opportunities.

• Assess sector exposure and market opportunities
  Companies in manufacturing, agriculture, renewable energy, pharmaceuticals, logistics, and technology should evaluate how expanded bilateral cooperation may affect sourcing, exports, investment, or market expansion plans.
• Track market access and trade developments
  Exporters and agribusiness firms should monitor developments related to agricultural market access and the AITIGA review, which could affect tariff treatment and regional trade flows.
• Strengthen regional supply chain planning
  As both countries seek deeper supply chain integration, companies may benefit from reassessing sourcing strategies, diversifying suppliers, and expanding regional manufacturing networks with Vietnam and India.

(With input from Archana Rao.)

For international investors, Vietnam's different localities offer favorable conditions across almost every sector, particularly as the country shifts toward higher value-chain manufacturing, high-tech industries, and innovation. Taking a closer look at Vietnam's provinces and investment destinations before committing capital can provide a decisive competitive advantage. A tailored market study, dedicated location selection, or business matchmaking can uncover factors that are often hard to assess—such as special incentives, skilled labor availability, and tax breaks.

Huyen Do

Manager, Business Intelligence Vietnam

Talk to an expert at vietnam@dezshira.com

Or request a consultation at +84 28 3930 2828

• Previous Article Cutting Red Tape at Scale: What Vietnam’s Latest Administrative Reforms Mean for Investors
• Next Article Vietnam’s New Tax and Financial Policies Taking Effect in May 2026