India and Vietnam target $25 billion trade by 2030 after Modi-To Lam talks
text_fields
Indian Prime Minister Narendra Modi and Vietnamese President To Lam on Wednesday agreed to strengthen economic and defence ties, with both countries setting a target of raising bilateral trade to $25 billion by 2030.
The two leaders held talks in New Delhi and oversaw agreements across sectors including rare earths and payment systems.
Speaking at a joint press briefing, Modi said bilateral trade had doubled over the past decade to around $16 billion. He said both sides had taken several decisions to further expand trade, including improving market access for Indian pharmaceutical and agricultural products in Vietnam and easing entry for Vietnamese goods into India.
“Very soon, Vietnam will enjoy India’s grapes and pomegranates, while India will enjoy Vietnam’s durian and pomelo,” PM Modi said.
Lam, who is also the General Secretary of Vietnam’s Communist Party, said both countries agreed to deepen political trust, increase high-level engagement and strengthen existing cooperation mechanisms. He added that India and Vietnam would elevate defence and security cooperation to support peace and stability in the region.
The visit comes as both countries seek stronger regional partnerships while global trade continues to face disruptions linked to tensions in West Asia and uncertainty in ties with Washington under the Trump administration.
Lam is on his second overseas visit since becoming president last month and is accompanied by ministers and a business delegation. On Tuesday, he met India’s National Security Adviser Ajit Doval, with both sides agreeing to expand cooperation in security, artificial intelligence and energy.
India considers Vietnam a key partner in its Act East policy. Indian firms have invested $1.1 billion across 473 projects in Vietnam, while Vietnamese investments in India include VinFast’s electric vehicle factory in Tamil Nadu and Vingroup’s planned $6.5 billion investment in Maharashtra.
Defence ties have also grown in recent years, including maritime cooperation and joint exercises. India transferred the missile corvette INS Kirpan to Vietnam in 2023.
Indian tourist arrivals in Vietnam rose 50 per cent last year to about 746,000.