India - Vietnam Relations
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Consulate General of India
Ho Chi Minh City

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 has grown on all fora over the last five decades. 
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.  
In recent times, Prime Minister Narendra Modi’s visit to Vietnam from 02-03 September 2016, saw elevationof strategic partnership to comprehensive strategic partnership, reflecting the continued commitment of political leadership in strengthening bilateral ties. Minister of State for External Affairs General (Dr.) V K Singh visited Vietnam from 21-23 April 2017 to participate in the celebrations commemorating 45th anniversary of establishment of diplomatic relations between the two countries (1972-2017).  Trade and economic linkages have been identified as a priority.  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. India and Vietnam closely cooperate in various regional fora such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO. Vietnam is the ASEAN country coordinator for India for the period 2015-2018.

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 Vietnamwas US$10.135 billion during April 2016 –March 2017 (Indian Exports US$6.815 billion, Imports US$3.320 billion). A significant jump of 29.5% over the corresponding period in 2015-16.

Period

Imports
(Vietnam from India – US$  billions)

Exports
(Vietnam to India – US$ billions)

Total Bilateral trade
(US$ billions)

2014-15

6.258

3.003

9.261

2015-16

5.266

2.560

7.826

2016–17

6.815

3.320

10.135


Source : http://commerce.nic.in/eidb/default.asp

  • * 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, which was reiterated during the visit of Prime Minister of India to Vietnam in September, 2016.

  • * 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.

  • * Investment by Indian companies (including that from third countries) into Vietnam is over US$ 1 billion. Indian companies have invested in oil and gas exploration, mineral exploration and processing, sugar manufacturing, agro-chemicals, IT, and agricultural processing.  TATA group has been allotted a project of US$ 2.1 billion in thermal power plant in Soc Trang province and it has also started construction of a Coffee processing plant in Binh Duong Province, an investment of approximately US$ 63 million.

  • * 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. 

  • * Direct Flight: An Air Service Agreement was signed in November 2013, during the visit of Party General Secretary H.E. Mr Nguyen PhuTrong to India. Connectivity remains an important element for furthering our investment cooperation & tourism. In this vein, a Memorandum of Understanding was signed between India’s national Carrier Air India and Vietjet Air of Vietnam in December 2016 during the visit of Chairperson of National Assembly of Vietnam Nguyen Thi Kim Ngan, and direct flights are expected to commence between India and Vietnam by the end of 2017.

  • * 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 to promote trade and investment. 

Indian delegations to Vietnam:-

    1. 1 The Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL), Mumbai led 50 leading Indian companies to organize Indian Chemicals and Cosmetics Exhibition in HCM City in January 6-7, 2016;

    2. 2 Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) organized a delegation of 38 companies to visit HCM City from March 17-18, 2016 to organize an India – Vietnam Business Meeting on Pharmaceutical Industry on March 17, 2016;

    • 3 Visit of TEXPROCIL & Indian Textile Companies in connection with Fashion Show Ao Dai & Saree, and Vietnam Saigon Textile & Garment Industry Expo held in Ho Chi Minh City from March 30 to April 2, 2016; 

    • 4 In a program coordinated by Network of Aquaculture Centres in Asia Pacific (NACA), Bangkok and Nong Lam University, HCM City, a delegation from Government of Odisha and 7 aqua farmers visited HCMC in April, 2016;

    1. 5 Council for Leather Export Promotion led 41 Indian exporters/manufacturers of finished leathers and leather products participated in the International Shoes and Leather Exhibition Vietnam at SECC, HCM City from July 13-15, 2016;

    2. 6 A 5 member Soybean Processors Association (SOPA) of India delegation led by their Chairman Dr. Davish Jain visited Vietnam to revive the Indian soymeal exports from 24-26 September 2016,
    3. 7 Electronics and Software Export Promotion Council of India led a delegation of 13 IT companies to  Ho Chi Minh City from 05-07 October 2016;

    4. 8 Confederation of Indian Industries mounted a 48 member delegation for METALEX 2016 exhibition at HCM City in October 2016;

    5. 9 Energy Efficiency Services Limited visited Vietnam to scout for business opportunities in LED sector and held workshops in Hanoi and HCM City in November 2016;

    6. 10 TEXPROCIL (The Cotton textile Export Promotion Council of India) organized a delegation of 15 companies to participate in the16th International Vietnam Garment and Textile Fair in November 2016.

    7. 11 PLEXCONCIL, India and NSIC mobilized more than 50 Indian companies to participate in ‘PLASTICS VIETNAM’ exhibition from 22-24 February 2017.

    8. 12 A 47 Indian leading companies led by ASSOCHAM participated at the ProPak Vietnam 2017 from 21-23 March 2017 in HCMC.

    9. 13 Eighteen Indian companies participated in SAIGONTEX 2017 FROM 5-8 April 2017.

    10. 14 Council of Leather Exports led a 34 member delegation to participate in 19th International Shoes and Leather Exhibition 2017 from 12-14 July 2017.

    11. 15 An 8 member delegation from ITAMMA visited HCM City from 20-22 July 2017.

    12. 16 FICCI Kerala State Council led a 22 member delegation to attend the twin exhibitions ‘Vietfood and Beverage’ & ‘Propack Vietnam’ from 9-12 August 2017 at HCM City.

Vietnamese Delegations to India:-

    • * Vietnamese delegations from five Southern Vietnam provinces (Ca Mau, NinhThuan, Soc Trang, TayNinh, Tien Giang) participated at the 3rd India – CLMV Business Conclave ‘Creating Business Partnerships’ in Tamilnadu from 12-13 January, 2016;

    • * Representatives from Vien Dong College, VP Bank Finance Co. Ltd. participated in INDIASOFT 2016, Mumbai from 3-4 March 2016;

    • * Vietnam Chamber of Commerce and Industry led 11 companies to participate in CAPINDIA  2016, Mumbai organized by CHEMEXCIL from 20-22 March 2016;

    • * A ten member delegation from Saigon Jewelry Association visited Mumbai to attend the 33rd edition of the India International Jewellery Show from 5-8 August, 2016;

    • * A 15 member business delegation of Vietnamese garment & yarn importers visited ‘Source India’ textile show at Ahmedabad from 13-14 August 2016;

    • * Ho Chi Minh City Association of Women Entrepreneurs & Enterprises (HAWEE)’s 19 member business delegation visited Mumbai, New Delhi from Sept. 26 – Oct. 6. to explore Indian market for importing gems, diamond, body care, cosmetics from natural herbal Ayurveda, organic chemicals and Indian entertainment series;

    • * A 10 member delegation from the Foreign Service Company, FOSCO, visited Ahmedabad, Gujarat, to participate in the ‘Vibrant Ceramics Expo and Summit 2016’ from 16-18 December 2016.

    • * Electronics and Software Export Promotion Council of India (ESC) sponsored 15 Vietnamese delegates from Southern Vietnam provinces to participate in the ‘INDIASOFT 2017’ conference/B2B event at Hyderabad from 13-14 February 2017;

    • * About 70 strong delegation from Vietnam, led by the Deputy Minister of Industry and Trade Cao Quoc Hung, participated in the 4thIndia-CLMV Business Conclave organized by CII and the Government of India at Jaipur, Rajasthan from 27-28 February 2017. Five provinces from South Vietnam, NinhThuan, Gia Lai, HCM City, BinhPhuoc and Tien Giang participated with 50+ members.

10. Ten Vietnamese companies led by VCCI HCM City and Vietnam          
Plastic Association participated in CAPINDIA 2017 exhibition at    Mumbai from 21-22 March 2017.

 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..

    • * 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;

    • * India has also agreed to consider earmarking an amount of up to USD 100 million under the Buyer’s Credit of the National Export Insurance Account (BC-NEIA) for use by Vietnam;

    • * A new US$500 million credit line for deepening bilateral defence cooperation was announced by the Indian Prime Minister during his visit in September 2016.

  • * Scholarships: Vietnam has been a recipient of large number of scholarships under Indian Technical and Economic Cooperation (ITEC) programme. Presently, 150 ITEC slots are being offered to Vietnam every year. Scholarships are also offered 16 scholarships under the General Cultural Scholarship Scheme (GCSS), 14 scholarships under the Educational Exchange Programme (EEP) and 10 scholarships under the Mekong Ganga Cooperation Scholarship Scheme (MGCSS). 

  Assistance to Vietnam within the ASEAN framework:

  • * An Inter-Governmental Framework Agreement has been signed between the two countries for Exploration and Use of Outer Space for Peaceful Purposes and both sides are to conclude the Implementing Arrangement between the Indian Space Research Organisation and Viet Nam Ministry of Natural Resources and Environment on Establishment of Tracking and Data Reception Station and Data Processing Facility in Vietnam under the India-ASEAN Space Cooperation.

  • * 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 and is being implemented.

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. 
There are three Hindu temples, one mosque and a cemetery in HCM City, built about a century ago where 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.  
3rd International Day of Yoga (IDY) was celebrated in 9 Provinces of Vietnam, including Hanoi and Ho Chi Minh City.  IDY celebrations began with a program held at Ly Thai To Square near the iconic HoanKiem Lake in Hanoi on 17 June 2017 and in HCM City IDY was held at the famous Nguyen Hue (Walking) street on 25 June 2017. The event in HCM City was covered live by popular HTV channel and watched live by over 3.2 million people.
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).

Indian Community

The estimated population of Indians living in Vietnam is about 2000, mostly in HCMC. The Indian community is vibrant, law-abiding, well-educated and prosperous. There has been an increase in professionals working in multinational companies in Vietnam. 
Representatives of Indian businesses have knit themselves in an organization called Indian Business Chamber (INCHAM).  INCHAM promotes trade and business interactions as well as organizes cultural events. 

Useful Resources


(August 2017)

 





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