By: Esha Aphale
@aphale_esha
Mumbai: Sharing traditionally close and cordial bilateral relations due to their common struggle from the liberation of colonial rule and their independence, India and Vietnam have more in common than one can guess.
With commonalities in cultural and civilizational links and historical roots in their struggle for freedom, the two countries also share a similar route in their heroic escape from colonialism.
India initially maintained consulate-level relations when Vietnam wasn’t unified and existed as North and South Vietnam, but later progressed to a full spectrum of diplomatic relations when Vietnam was unified in 1972.
The founding fathers of both nations deliberately maintained exceptionally amicable and cordial relations with one another since the inception of their freedom.
Prime Minister Jawaharlal Nehru was notably one of the first people to visit Vietnam after its victory against the French at Dien Bien Phu in 1954. Four years later, Vietnam’s president, President Ho Chi Minh, visited India and then a year after, the then President of India Dr Rajendra Prasad, visited Vietnam in 1959.
Recently, political, economic, and trade relations between the two countries have strengthened. With regards to COVID-related travel restrictions, Prime Minister Narendra Modi and Prime Minister Nguyen Xuan Phuc held the very first India-Vietnam Virtual Summit on 21 December 2020, during which they took on a notable “Joint Vision for Peace, Prosperity and People” to direct the future advancement of bilateral relations. Uninvolved in the Virtual Summit, the two Foreign Ministers also marked a Plan of Action for 2021-23 to execute the Joint Vision.
From a meagre US$200 million in the year 2000, the two countries have continued to maintain steady-fast paced trade and economic relations. Vietnam and India have uplifted each other through this pandemic and kept trade relations alive.
In the fiscal year 2020-21, Vietnam was India’s largest trading partner, ranking 15th globally and 4th within the ASEAN network. During the same time, India was Vietnam’s largest trading partner, ranking 10th globally.
In the same fiscal year, the critical items that India exported to Vietnam were iron, steel, cotton, frozen meat, auto components, seafood, electrical machinery and equipment, animal feeds and cereals.
The main Indian products that indicated a positive growth were cotton, auto components, electrical equipment, animal feed ingredients, cereals and pharmaceutical products.
The key items Vietnam exported to India during this period were electrical machinery and equipment, chemicals, copper and articles of copper, products of iron and steel and agro-based commodities.
According to Vietnam’s Foreign Investment Agency (VFIA), as of April 2021, India has 299 valid projects with total invested capital of US$ 909.5 million, ranking 26th among countries and territories investing in Vietnam.
Significant sectors of Indian investment are energy, mineral exploration, agro-processing, sugar, tea, coffee manufacturing, agro-chemicals, IT and auto components.
As of 2020, Vietnam has had six investment projects in India with a total estimated investment of US$ 28.55 million, primarily in the areas of pharmaceuticals, information technology, chemicals and building materials.
India has been taking up Quick Impact Projects (QIPs), which are each valued to be at US$50,000, in various sectors in Vietnam for developing and strengthening the community infrastructure. The QIPs are known to bring direct benefits to communities at a smaller level due to their short gestation period.
Since 2017, 37 QIPs have been undertaken in 33 various provinces of Vietnam. Out of this, 22 projects have been completed, while the remaining 15 are slated to be completed in 2021-22. The 15 projects are in various stages of implementation and completion currently.
Additionally, seven grant-in-aid assistance projects for the benefit of the Cham community in Ninh Thuan province were completed in December 2020 with an outlay of around US$ 1.54 million.
While solid trade and political relations are essential in maintaining ties between nations, cultural ties are the ones that add more credibility to the foundation.
To create such ties, Vietnam and India have introduced and implemented various programs. Many film festivals, cultural events, educational programs, food festivals, exhibitions, and conferences are held throughout the year.
In 2014 Vietnam hosted a festival titled “Festival of India” for 10 days, from March 5 to March 15. This festival was held in Hanoi, Danang and Ho Chi Minh City and had a great immersive experience into Indian culture.
Visitors to this festival were able to enjoy a Classical Dance Recital by Sangeet Natak Academy, a Buddhist Festival by Central Institute of Himalayan Cultural Studies, Food Festival, Folk dance by Kalbelia Group, Mehendi, and Yoga.
This entire festival was very well-received by the citizens of Vietnam and helped in introducing the extensivity of Indian culture. Culture is primarily important to Indians overall, and Vietnam’s efforts in understanding the Indian culture in the correct way was appreciated.
Moving forward, it is evident due to the history of ties between Vietnam and India, the relationship between the two countries is only going to strengthen. The give-and-take between the nations is not just restricted to trade. Still, it extends to a more significant relationship that can drastically help the two countries’ progress while supporting one another.
