Vietnam viewed as a priority in India's Act East policy

The year marks the 10th anniversary of India’s “Act East Policy”, which has been a key element in their approach to Southeast Asia since 1992.

In power for a third term after winning a general election held in June, Indian Prime Minister Narendra Modi is determined to pursue and develop this policy based on stronger results and action orientation. In particular, Vietnam is widely seen as being a strong pillar in India's Act East policy, based on mutual trust and understanding.

In a recent interview granted to VOV, Jaideep Mazumdar, secretary (East) at the Indian Ministry of External Affairs, said Vietnam is one of the high priorities in India's Act East policy and is a country with strong development potential and an increasing voice within the international arena.

India has set up an IT hub in Nha Trang and has many quick impact development projects such as infrastructure building, Jaideep analysed.

The Indian diplomat outlined that in the context of a complex and volatile world, promoting bilateral relations will be a key factor in which to ensure peace, development, and prosperity. The two countries therefore need to leverage each other's potential strengths and make good use of co-operation opportunities to overcome existing challenges.

In terms of co-operation opportunities, the two countries can work closely together in the recovery of the supply chain. Indeed, the nation is one of the important countries that has received continuous support from India at both political and social levels. This is reflected in major regional issues as well as at a global level, he added.

Prof. Srikanth Kondapalli, East Asia researcher at the School of International Studies of Jawaharlal Nehru University, said that the two countries have enjoyed a very good relationship historically. Now, it is the responsibility of the two sides to renew this relationship in the new context, he said.

The new context is globalization, trade and investment, people-to-people exchanges, and also how the two countries overcome different fractures caused by the financial crisis. This can be seen by the conflict in Ukraine and by the conflict in the Middle East, Kondapalli said, adding that India is trying to unite and like Vietnam, India also has similar foreign policy goals.

India sees great potential for the mutual relationship, especially since the upgrading of relations to a comprehensive strategic partnership in 2016. Bilateral trade has witnessed steady growth over the years. The nation represents India’s fourth largest trading partner among ASEAN member states whilst India is among Vietnam’s top 10 trading partners.

Many Indian businesses are looking to invest in the Vietnamese market in various sectors such as oil and gas, solar and wind energy, agriculture, minerals, mining, and garments and textiles. Notably, both nations regard national security and defence as strong pillars in the strategic partnership.

During his visit to India in August this year, Prime Minister Pham Minh Chinh outlined five key fundamental factors between the two countries, including good traditional friendship; high political trust; open market; similar culture and civilization; shared ideas; and shared aspirations to build a strong, prosperous country with rapid and sustainable economic development.