India – Vietnam

India-Vietnam relations have been exceptionally friendly and cordial since their foundations were laid by Prime Minister Nehru and President Ho Chi Minh more than 50 years ago. The traditionally close and cordial relations have their historical roots in the common struggle for liberation from foreign rule and the national struggle for independence. 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 went to India in February 1958. President Rajendra Prasad visited Vietnam in 1959. In recent times, political contacts have strengthened as reflected in several high-level visits by leaders from both sides. Trade and economic linkages continue to grow. India’s thrust under the ‘Look 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 forums such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO.

President’s Visit To Vietnam (September 2014) President Pranab Mukherjee visited Vietnam. During this visit, India and Vietnam signed seven agreements, including one for enhanced cooperation in the oil sector.

S.No.

Name of Agreement/MoU

Description of the Agreement/MoU

01 Agreement on Cooperation and Mutual Assistance in Customs Matters
  • The Agreement aims to strengthen, promote and develop cooperation and mutual assistance on matters pertaining to customs between India and Vietnam.
  • The two countries shall assist each other for the prevention, investigation and combating customs offences for the proper application of customs laws and for facilitating legitimate trade. The two countries shall also cooperate and exchange information in their enforcement against the illicit trafficking of narcotic drugs, psychotropic substances, precursor chemicals and other prohibited goods.
02 MoU on $ 100 million Line of Credit for Defence Procurement
  • The MoU provides concessional line of credit for procurement of defence equipment from India. Details of equipment to be procured by Vietnam are under finalization.
03 MoU in the field of Animal Health
  • The MoU establishes cooperation between India and Vietnam in the field of Animal Health including protecting territory of each other from introduction of animal diseases and infection caused by the trade of animals, products of animal origin and materials of animal reproduction.
  • India and Vietnam shall also share special information on meat processing, meat products and slaughter houses/abattoirs. They shall cooperate in the training and upgrading of human resources in the field of animal health through exchange of delegations, workshops, expert visits, training and share information on veterinary research.
04 MoU in the Field of Setting up of Pangasius Breeding and Farming in India.
  • This MoU between India and Vietnam is aimed at cooperation in transfer of technology and setting up of Pangasius (catfish) breeding and farming in India and allied activities between the two countries through joint activities, programmes, exchange of scientific material, information and personnel.
  • The joint activities shall be environmentally sound and sustainable. Annual Work Plan will be drawn and a Joint Technical Committee shall be formed to provide guidance, review progress and facilitate cooperation.

05 MoU in Youth Affairs
  • The MoU provides the framework for programmes of cooperation between India and Vietnam in the field of youth development and excellence by encouraging and promoting an exchange of programmes, experience, skills, techniques, information and knowledge.
  • The youth programmes shall include participation of young politicians, young entrepreneurs, young doctors, young journalists etc. It shall also involve participation of young people from both countries in youth festivals, seminars and conferences on youth related issues.
06 Letter of Intent between ONGC Videsh Limited, India and Vietnam Oil and Gas Group (PetroVietnam).
  • ONGC Videsh Limited (OVL) and PetroVietnam signed an MoU on 20 November, 2013 with an objective to enhance mutual cooperation in hydrocarbon sector.
  • PetroVietnam offered new blocks to OVL for oil and gas exploration and production. OVL is keen to expand its presence in Vietnam and is evaluating the blocks on offer. This Letter of Intent will further consolidate cooperation between India and Vietnam in energy sector and pave way for future collaboration between the two countries in this area.
07 MoU between Jet Airways (India) and Vietnam Airlines Company Limited.
  • Jet Airways and Vietnam Airlines have entered into this MoU for enhancing their presence in each other’s markets. The scope of the MoU involves code sharing on services of each other.
  • From 5 November 2014, Jet Airways intends to extend its Mumbai-Bangkok flight to Ho Chi Minh City, Vietnam. This service will also enable passengers travelling from Delhi to Bangkok, to connect on the extension flight beyond Bangkok to Ho Chi Minh City.

India inks free trade agreement with ASEAN India has formally signed a free trade agreement for services and investments with ASEAN. Philippines, now the only ASEAN country yet to sign the pact, is also expected to do so soon. All ASEAN members — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — are expected to get the agreement ratified by their Parliaments after which it will be formally adopted during the next India–ASEAN summit later this year. The services agreement will open up opportunities of movement of both manpower and investments. The pact will allow India to leverage its competitive edge in the areas of finance, education, health, IT, telecommunications and transport. This will be especially helpful for balancing India’s deficit with ASEAN countries in trade of goods. The India–ASEAN Agreement on trade in goods was operationalised in 2010. Key to India’s interests is a brief annex in the agreement on the movement of natural persons that defines business visitors, intra corporate transferees (managers, executives and specialists) and contractual service suppliers. The move would help provide a commercially meaningful market across ASEAN for India’s professionals, including those from the IT/ITeS sector.

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