51
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
A política de olhar para o leste da Índia:
o papel fundamental do Vietnã em meio à
influência regional crescente da China
India’s look east policy: Vietnam’s pivotal role amidst
China’s rising regional influence
Política de mirada al este de la India: el poderoso papel de
Vietnam en medio de la creciente influencia regional de
China
Tran Xuan Hiep1
Le Hoang Kiet2
Phan Thi Hai Yen3
Enviado: Novembro de 2024
Aceito em: 30 de Abril de 2025
RESUMO
Índia e Vietnã estabeleceram uma Parceria Estratégica Abrangente em 2016.
Ambos os países são pilares importantes nas políticas e estratégias regionais
e globais um do outro. Em particular, o Vietnã desempenha um papel muito
signicativo na Política de Ação para o Leste da Índia desde seu anúncio pelo
Primeiro Ministro Narendra Modi em 2014. Este artigo utiliza principalmente
métodos de análise qualitativa por meio de fontes de dados secundárias para es-
clarecer a posição e o papel do Vietnã na Política de Ação para o Leste da Índia
diante dos desaos da China. Os resultados mostram que a Índia está aprimo-
rando a cooperação em defesa, segurança e econômico-comercial com o Vietnã
para consolidar a parceria estratégica e limitar a inuência da China no país. A
análise destaca a importância estratégica do Vietnã para abordar os interesses
econômicos e de segurança da Índia na região do Mar da China Meridional, ao
mesmo tempo em que contrabalança a crescente assertividade da China. O estu-
do conclui que o Vietnã desempenha um papel crucial na Política de Ação para
o Leste da Índia, ajudando a Índia a aprimorar sua presença marítima, integra-
ção econômica e cooperação em segurança na região Indo-Pacíco.
Palavras-chave: Índia. Vietnã. China. Política do Leste Asiático. Sudeste Asiático.
ABSTRACT
India and Vietnam established a Comprehensive Strategic Partnership in 2016.
Both countries are important pillars in each other’s regional and global policies
and strategies. In particular, Vietnam plays a very signicant role in India’s Act
East Policy since its announcement by Prime Minister Narendra Modi in 2014.
This paper mainly utilizes qualitative analysis methods through secondary
data sources to clarify Vietnam’s position and role in India’s Act East Policy in
1. The University of Da Nang, University
of Science and Education, Vietnam.
https://orcid.org/0000-0002-5236-993X
2. Yersin University, Vietnam. https://
orcid.org/0009-0002-9968-1952
3. Van Hien University, Vietnam. https://
orcid.org/0009-0000-0004-2778
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
the face of challenges from China. The results show that India is enhancing
defense-security and economic-trade cooperation with Vietnam to consolidate
the strategic partnership and limit China’s inuence in the country. The analysis
highlights Vietnam’s strategic importance in addressing India’s security and eco-
nomic interests in the South China Sea region, while counterbalancing China’s
growing assertiveness. The study concludes that Vietnam plays a crucial role in
India’s Act East Policy, helping India enhance its maritime presence, economic
integration, and security cooperation in the Indo-Pacic region.
Keywords: India. Vietnam. China. Act East Policy. Southeast Asia.
RESUMEN
India y Vietnam establecieron una Asociación Estratégica Integral en 2016.
Ambos países son pilares importantes en las políticas y estrategias regionales y
globales de cada uno. En particular, Vietnam desempeña un papel muy signi-
cativo en la Política de Actuar hacia el Este de la India desde su anuncio por el
Primer Ministro Narendra Modi en 2014. Este documento utiliza principalmen-
te métodos de análisis cualitativos a través de fuentes de datos secundarios para
aclarar la posición y el papel de Vietnam en la Política de Actuar hacia el Este de
la India frente a los desafíos de China. Los resultados muestran que India está
mejorando la cooperación en materia de defensa, seguridad y economía-comer-
cio con Vietnam para consolidar la asociación estratégica y limitar la inuencia
de China en el país. El análisis destaca la importancia estratégica de Vietnam
para abordar los intereses económicos y de seguridad de la India en la región del
Mar de China Meridional, al tiempo que contrarresta la creciente asertividad de
China. El estudio concluye que Vietnam desempeña un papel crucial en la Políti-
ca de Actuar hacia el Este de la India, ayudando a la India a mejorar su presencia
marítima, la integración económica y la cooperación en materia de seguridad en
la región del Indo-Pacíco.
Palavras-chave: India. Vietnam. China. Política de Actuar hacia el Este. Sudeste
Asiático.
1 INTRODUCTION
The Indo-Pacic region is undergoing profound and complex trans-
formations due to the intensifying strategic competition among major
powers. Within this context, the rivalry between India and China has
emerged as one of the most signicant dynamicssecond only to the
U.S.-China competition in terms of scale and inuence (Kiet & Tuyen,
2023). This competition is particularly pronounced in Southeast Asia, a
region comprising some of the most dynamic emerging economies of the
21st century (Saha, 2022). As two rising powers with global ambitions,
India and China are actively reshaping the political and security architec-
ture of the region.
According to the International Monetary Fund (IMF, 2024), both
India and China rank among the fastest-growing economies in the
world, with India’s GDP reaching USD 3.75 trillion and Chinas GDP
reaching USD 17.52 trillion. These economic projections indicate sus-
tained growth for both nations throughout the 21st century. However,
bilateral relations between India and China remain fraught with his-
torical tensions, particularly unresolved border disputes and security
concerns regarding water resources linked to the Tibetan Plateau (Kiet,
53
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
2023). A core cause of their divergent strategic perspectives is the pro-
longed border dispute. The 1962 Sino-Indian War and subsequent skir-
mishes have left deep scars and mutual distrust. Areas such as Aksai
Chin and Arunachal Pradesh continue to be ashpoints in the bilate-
ral relationship (Walker, 2025). These strategic dierences often stem
from how each country perceives its historical and cultural position in
the region. For instance, China views Tibet as an inseparable part of
its territory, while India maintains historical and cultural ties to the re-
gion. India and China also dier signicantly in their relationships with
neighboring countries. India is often regarded as a democratic power in
South Asia, whereas China exerts stronger economic inuence across
many regions. These enduring tensions, coupled with geographic proxi-
mity and competing great power ambitions, have led the two countries
into a persistent cycle of strategic rivalry.
Against this backdrop, India–Vietnam relations have become in-
creasingly signicant, particularly within the framework of Indias Act
East Policy (AEP). This article seeks to examine Vietnam’s strategic role in
supporting India’s eorts to respond to the China challenge in Southeast
Asia. The India–China strategic rivalry is not limited to Southeast Asia
but is also deeply embedded in bilateral history and regional dynamics in
South Asia. This study is grounded in the theoretical traditions of neorea-
lism and complex interdependence, providing a dual lens to understand
the evolution of Indias regional strategy and its implications for India–
Vietnam relations.
From a neorealist perspective, states are primarily concerned with
survival and relative power in an anarchic international system (Waltz,
1979). In this context, India’s transition from the Look East Policy (LEP)
to the Act East Policy (AEP) can be interpreted as a strategic response to
the growing inuence of China in the Indo-Pacic region, particularly in
Southeast Asia. Neorealism explains Indias increasing alignment with
Vietnam as part of a broader balancing strategy aimed at countering
China’s assertiveness and preserving a favorable balance of power in the
region.
Simultaneously, the framework of complex interdependence
(Keohane & Nye, 1977) oers a complementary approach that acknow-
ledges the growing importance of economic, institutional, and strategic
linkages between states. The deepening of IndiaVietnam cooperation
in trade, defense, and multilateral engagement through ASEAN-led me-
chanisms reects a shift towards more diversied and institutionalized
forms of interaction. In this view, Indias strategic interests are not only
shaped by hard power calculations but also by the need to embed itself in
regional economic and diplomatic networks to enhance its inuence and
resilience.
By integrating these two perspectives, this study seeks to capture
the dynamic interplay between traditional power politics and the increa-
singly interconnected nature of contemporary international relations in
the Indo-Pacic. This theoretical framework enables a more nuanced un-
derstanding of Indias evolving regional posture and the strategic role of
Vietnam within it.
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
India’s contemporary strategy toward Southeast Asia is articu-
lated through the Act East Policy (AEP), introduced by Prime Minister
Narendra Modi in 2014. The AEP marks a shift from the earlier Look East
Policy (LEP), reecting a more proactive and multidimensional approa-
ch to regional engagement. Within this strategic framework, Vietnam
plays a pivotal role, particularly in enhancing India’s economic and se-
curity cooperation with ASEAN. Complementary policies such as the
Indo-Pacic Strategy and the Indo-Pacic Oceans Initiative should also
be considered (Cuong & Linh, 2023).
This study examines the strategic evolution from India’s Look East
Policy (LEP) to the Act East Policy (AEP) and how this policy shift has
shaped India’s defense, security, and economic cooperation with Vietnam.
The central research question guiding this inquiry is: “how does the tran-
sition from India’s Look East Policy (LEP) to the Act East Policy (AEP)
reect the country’s evolving strategic interests in Southeast Asia, and
in what ways has this shift inuenced India–Vietnam cooperation in de-
fense, security, and trade in response to regional dynamics, particularly
China’s assertiveness?”
By integrating historical analysis with contemporary develop-
ments, this study explores Vietnams role as a strategic partner and an
enabling factor in advancing India’s long-term objectives in Southeast
Asia and the broader Indo-Pacic region.
2 OVERVIEW OF THE HISTORY AND CIRCUMSTANCES BEHIND INDIAS LEP
By the late 1990s, China had openly expanded its sphere of inuen-
ce into South Asia and the Indian Ocean region, signicantly impacting
India’s traditional security and strategic position in these areas. During
this period, India undertook “comprehensive economic reforms aimed
at global integration, liberalization, and the development of multilateral
and global trade relations in 1991” (Nghi & Nghia, 2013). Simultaneously,
former Prime Minister Narasimha Rao introduced the LEP as a key
component of Indias foreign policy and strategic vision in the new era
of the New Delhi government. This policy had four main objectives: (1)
Strengthening market connectivity and expanding economic and trade
cooperation with countries in Southeast Asia; (2) “Building an economic
corridor extending from South Asia to the Pacic Ocean, driving development
in Indias remote and impoverished northeastern region and the Indian eco-
nomy as a whole” (Hai, 2017, p. 35); (3) Increasing inuence over Southeast
Asian countries, while promoting a peaceful and stable regional order; (4)
“Indirectly counterbalancing Chinas policies and strategies being implemented
in Southeast Asia, especially in Myanmar” (Paode, 2013). India’s LEP can be
divided into two phases:
2.1 Phase 1 (1991–2003): Foundational Engagement
This initial phase emphasized political and economic engagement
with ASEAN. India prioritized diplomacy, multilateral cooperation, and
institutional integration. In 1995, it became a full dialogue partner of
55
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
ASEAN and joined the ASEAN Regional Forum (ARF) in 1996, marking
its entry into regional security dialogues. India also began asserting its
maritime presence by forging naval partnerships with key coastal states,
including Singapore, Malaysia, Indonesia, Thailand, and Vietnam (Binh,
2013). In 2003, India signed a Joint Defense Treaty with Singapore, dee-
pening military-to-military ties, particularly in naval operations aimed at
securing vital maritime chokepoints like the Strait of Malacca.
2.2 Phase 2 (2003–2014): Expansion and Consolidation
This phase witnessed the expansion of Indias engagement into
East Asia, including Japan, South Korea, China, and Oceania, such as
Australia and New Zealand (Liem & Thao, 2021). Unlike the initial pha-
se, which focused on political and maritime initiatives, the second pha-
se placed a stronger emphasis on economic integration. Key milestones
in this phase include: (1) The India-ASEAN Framework Agreement on
Comprehensive Economic Cooperation in 2003, laying the foundation
for the liberalization of trade in goods, services, and investment; (2) the
ASEAN-India Trade in Goods Agreement (AITIG) in 2009, aimed at eli-
minating tari and non-tari barriers; (3) the ASEAN-India Investment
and Services Agreement in 2014, further deepening regional nancial
cooperation and service sectors (Mai & Hang, 2021).
India also participated in negotiations for the Regional
Comprehensive Economic Partnership (RCEP) in 2011, although it wi-
thdrew from the agreement in 2019. This shift impacted India’s position
and role in Southeast Asia. Nonetheless, India was prepared to reduce ta-
ri barriers with ASEAN countries. In response, Southeast Asian nations
encouraged India to play a larger balancing role in the regional security
architecture. The convergence of interests between India and ASEAN,
particularly concerning security and freedom of navigation, paved the
way for deeper political and defense cooperation (Lan, 2018).
Recognizing the changing dynamics in the Indo-Pacic region, on
November 12, 2014, at the ASEAN-India Summit, Prime Minister Modi
ocially announced the shift from the Look East Policy (LEP) to the
Act East Policy (AEP), marking a reorientation of Indias foreign policy
towards Southeast Asia. Modi declared, “An era of industrialization, eco-
nomic growth, and trade is beginning in India. Indias Look East Policy is
now the Act East Policy” (Muni & Mishra, 2019). The Act East Policy inhe-
rited and expanded upon the goals of the LEP, with a focus on: (1) strate-
gic partnerships with key countries in the region (particularly Vietnam);
(2) maritime presence in disputed areas such as the South China Sea; (3)
regional integration through ASEAN mechanisms; (4) direct balancing
against Chinas increasing assertiveness in Southeast Asia (Sang, 2022).
Prime Minister Modis diplomatic eorts, which included high-le-
vel visits to 8 of the 10 ASEAN countries (except Cambodia and Brunei,
where visits were made by the Deputy Prime Minister or Foreign
Minister), and the elevation of relations to Comprehensive Strategic
Partnerships (CSP) with Vietnam, Singapore, and Malaysia, demonstra-
ted India’s strong commitment to the region. The emphasis on maritime
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
cooperation and support for UNCLOS norms highlighted India’s position
as a maritime power based on international law, in contrast to Chinas
coercive actions (Trong, 2017).
In 2014, India ocially acknowledged the importance of maintai-
ning maritime security and freedom of navigation, respecting the so-
vereignty of nations in the South China Sea in the joint statement bet-
ween former U.S. President Barack Obama and Prime Minister Narendra
Modi. When China deployed the Haiyang Shiyou 981 drilling rig into
Vietnams sovereign waters in May 2014, Prime Minister Modi expres-
sed support for Vietnam, stating: “For peace and stability in the South China
Sea, all nations must adhere to international principles and laws, including the
United Nations Convention on the Law of the Sea (UNCLOS) of 1982 and the
Declaration on the Conduct of Parties in the South China Sea (DOC) of 2002
(Liem & Thao, 2021).
The AEP has been successfully demonstrated through the
Comprehensive Dialogue Partnership between India and ASEAN. This
relationship has evolved from a sectoral dialogue partner in 1992, to a
full partner in 1995, and further upgraded to a Comprehensive Strategic
Partnership in 2022 (Statements, 2022). Not only has this partnership dri-
ven bilateral trade, with total trade reaching over 110 billion USD in 2022
(VNTR, 2024), but India has also actively engaged in ASEAN-led mecha-
nisms such as the ASEAN Regional Forum (ARF), the East Asia Summit
(EAS), and the Expanded ASEAN Defense Ministers’ Meeting (ADMM+)
(Nanda, 2022). These eorts aim to ensure peace, security, and stability in
the region, while also witnessing India’s strong rise on the international
political stage.
Through the Comprehensive Asia Development Plan (CADP),
India has developed Asia connectivity—by road, rail, sea, and airappro-
ved by the relevant governments in 2015, such as the India-Myanmar-
Thailand Economic Corridor (IMT). India has built “strategic trust” as
a rising peaceful power, capable of making signicant contributions to
a peaceful and prosperous world (Thăng, 2023). The exible, “consen-
sus-based” cooperation model helps mitigate conicting interests, create
harmony, and contribute to building strategic trust with ASEAN. This
development philosophy of India is partly inspired by the tradition of
harmony in Hinduism, which has helped the country shape an image as
a respectful and cooperative partner in the development process, parti-
cularly in Southeast Asia. As a result, the AEP has been highly regarded
by ASEAN and the international community for its role in promoting
multilateralism and creating a security, peace, and freedom of navigation
environment in Southeast Asia.
3 VIETNAM’S POSITION AND ROLE IN INDIA’S AEP AMID THE
CHALLENGES FROM CHINA
Vietnam and India are bound by deep-rooted historical, friendly,
and traditional ties stemming from both nations’ struggles for indepen-
dence from colonial rule in the 20th century. The timeless and transcen-
dent nature of this relationship reects a close spiritual and ideological
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Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
anity forged through shared challenges in the past (Uyanaev, 2022).
This commonality provides a solid foundation for the two countries to
continually consolidate and advance comprehensive cooperation across
various domains. The relationship between the two peoples was founded
by the great leaders of the global independence movements, President
Ho Chi Minh and Prime Minister Jawaharlal Nehru, and has been nur-
tured by subsequent generations of leadership and the nations populaces
(Cuong & Linh, 2023). Moreover, Vietnam and India share numerous cul-
tural, artistic, and religious similarities, as well as convergent perspec-
tives on traditional and non-traditional security issues unfolding regio-
nally and globally. The mutually benecial foreign policy interests and
long-standing friendship “have enabled Vietnam and India to cooperate in
constructing and developing an enduring, transparent relationship between the
two Asian nations (Liem & Thao, 2021, p. 24).
Under Prime Minister Narendra Modi, Vietnam is a country with
a very important geo-strategic position for India’s AEP in the Southeast
Asian region, especially in the East Sea area. According to estimates by
the United Nations Conference on Trade and Development (UNCTAD)
(2020): About 80% of global trade by volume and 70% by value is transported by
sea. Of this, around 60% of maritime trade passes through Asia and the East Sea
plays an important role, accounting for an estimated one-third of global freight
movement”.
The East Sea region is particularly important for the supply chains
of countries with geographic locations adjacent to the sea in the Northeast
Asian region such as China, Taiwan, Japan, and South Korea. These cou-
ntries all rely on maritime transportation through the Strait of Malacca,
connecting to the East Sea and expanding to the Pacic Ocean and the
Indian Ocean. For India, “maritime transportation in the East Sea through
the Strait of Malacca accounts for 55% of Indias total 92-95% of global merchan-
dise trade” (Liem & Thao, 2021, p. 45). In particular, the rise of the Indian
economy has created an energy shortage for national development needs.
As a result, 85% of New Delhis oil imports are transported by sea, and
cooperation in oil exploration with countries in the East Sea is one of the
important energy sources for Indias energy security, especially coopera-
tion in oil exploration with Vietnam (Chakraborty, 2022). Therefore, the
East Sea plays an extremely important role in Indias security policy and
national interests in the 21st century. Realizing Chinas “hegemonic” ac-
tions regarding Vietnams sovereignty over islands in the East Sea region,
on July 19, 2010, at the ASEAN Regional Forum held in Hanoi, New Delhi
for the rst time publicly expressed its position in support of the East Sea
issues: “The East Sea is an important maritime route, India supports freedom of
navigation in the East Sea (Nghi & Nghia, 2013).
On July 12, 2016, immediately after the Permanent Court of
Arbitration (PCA) is ruling on the East Sea case, India called on China
to comply with the principles and international laws based on the 1982
United Nations Convention on the Law of the Sea (UNCLOS), the 2002
Declaration on the Conduct of Parties in the East Sea (DOC), calling
for an end to activities that could complicate or escalate the dispute, af-
fecting regional peace (Liem & Thao, 2021, p. 75). This arms Indias
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
position of participating in maintaining a peaceful environment and
freedom of navigation in the East Sea region, while increasing India’s
inuence and presence to limit Chinas expanding power in this region.
On July 16, 2020, as the two powers of the US and China were arguing
over Beijing’s claims in the East Sea, Indian Foreign Ministry spokesman
Anurag Srivastava stated:
“The East Sea is a part of the global commons. India has an abiding interest in
peace and stability in the region. We rmly stand for the freedom of navigation
and overight and unimpeded lawful commerce in these international wate-
rways, in accordance with international law, notably UNCLOS” (Ministry of
Information and Broadcasting, 2020).
The statement was made after Australia - a major power in the
Indo-Pacic - strongly voiced its support for the internationalization
and freedom of navigation in the East Sea. At the 17th ASEAN-India
Summit held virtually on November 13, 2020, Prime Minister Narendra
Modi continued to call for all parties (China) to fully implement the DOC,
expedite the nalization of an eective and substantive COC consistent with
international law and the 1982 UNCLOS” (Anh, 2020). On June 16, 2022,
at the ASEAN-India Special Foreign Ministers’ Meeting, Indian Foreign
Minister Subramanyam Jaishankar reiterated Indias support for ASEAN’s
eorts to promote dialogue and condence-building, and the full and
eective implementation of a substantive, eective, and eective COC
in accordance with international law and UNCLOS 1982 (Government
Newspaper, 2022). At the 18th Session of the Vietnam-India Joint
Committee on Economic, Commercial, Scientic and Technological
Cooperation on October 16, 2023, Indian Foreign Minister Subramanyam
Jaishankar armed his support for ASEANs central role and ASEAN’s
fundamental principles in addressing regional issues, including the East
Sea issue (Vietnam News Agency, 2023). Therefore, in order to promote
strategic interests in the East Sea region and economic and trade interests
in Southeast Asia, Vietnam plays an extremely important role in India’s
AEP under Prime Minister Narendra Modi.
4 STRENGHENING INDIA-VIETNAM DEFENSE TIES TO COUNTER
CHINA’S ASSERTIVENESS IN THE SOUTH CHINA SEA
In the Indo-Pacic region, Vietnam is the country most severely
aected by China’s strategy of expanding its power by asserting the “ni-
ne-dash line” claim in the East Sea. The Beijing government has imposed
unorthodox “historical evidence” regarding maritime sovereignty over
countries in the East Sea in an attempt to control global “trade intersec-
tions”, demonstrate its “hegemonic” power, and pose a serious threat to
the security and sovereignty of countries in the region. This has strongly
inuenced the globalization and internationalization trend of vital ma-
ritime routes on the oceans. Therefore, the power imbalance between
China and Vietnam has created a power imbalance between the two
countries in the region. With its overwhelming strength, the Beijing go-
vernment has made unorthodox claims regarding Vietnam’s sovereignty
over islands in the East Sea. China’s “hegemonic” actions have increased
59
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
instability, tensions, and confrontation between countries with conic-
ting interests with China. Particularly, the incident on May 1, 2014, when
China deployed the Haiyang Shiyou 981 oil rig in the East Sea area, es-
calated tensions in Vietnam-China relations in this region. According
to the recent report of the U.S Department of Defense (2023) Report on
Military and Security Developments Involving China, it noted China’s
recent aggressive actions:
“The People’s Republic of China (PRC) continues to challenge foreign military
activities in its exclusive economic zone (EEZ) in a manner that is inconsistent
with the rules of customary international law as reected in the UNCLOS. At
the same time, the People’s Liberation Army Navy (PLAN) conducts activities in
the EEZs of other countries, including the United States, Australia, Philippines,
Vietnam, and Malaysia” (U.S. Department of Defense, 2023).
Therefore, although Vietnam has always sought to maintain a frien-
dly neighborly relationship with China, it has also strengthened bilateral
relations with other countries around the world, especially with major po-
wers that have strategic interests in this region such as India, US, Japan,
South Korea, and Australia (Thayer, 2016). At the same time, Vietnam has
strengthened multilateral cooperation and global integration, supporting
the role of the United Nations as a supranational government to protect
interests, maintain peace, and create an equal legal environment to main-
tain regional and international security and stability. This is to ensure that
all countries are treated fairly and adhere to international rules, ensuring
freedom of navigation in the East Sea. The rise of China, accompanied by
its assertive and aggressive policies in the region, has compelled neighbo-
ring countries to respond to emerging threats to their security. China’s ex-
pansive and often illegitimate maritime claims in the South China Sea have
contributed to a volatile and uncertain security environment in Southeast
Asia. Notably, in September 2012, the Indian naval vessel INS Airavat was
challenged by the PLA Navy while transiting through Vietnamese wa-
ters, further reinforcing India’s strategic imperative to deepen maritime
cooperation and interoperability with Vietnam. In 2014, Vietnam exten-
ded India’s lease of two oil blocks in the South China Seaan action that
clearly drew disapproval from China. In 2016, despite the ruling of the
Permanent Court of Arbitration, China maintained its hardline approach
in the South China Sea. India, sharing a similar position with Vietnam, has
consistently supported freedom of navigation, adherence to international
law—particularly the United Nations Convention on the Law of the Sea
(UNCLOS)and has continued its oil and gas exploration activities wi-
thin Vietnams Exclusive Economic Zone (EEZ), even expanding to new
blocks despite Chinese objections (Anand, 2017).
Furthermore, the South China Sea serves as a principal maritime
conduit to the Pacic Ocean. Chinas territorial claims over this body of
water would directly impact India, particularly if Beijing begins to enfor-
ce its sovereignty assertions. Historically and culturally, the South China
Sea—and Southeast Asia more broadly—constitute an integral part of
India’s civilizational footprint. Any hegemonic control by China over the
South China Sea would eectively constrain India’s ability to pursue its
Act East” Policy with strategic autonomy. Consequently, Indias objective
must be to ensure that the South China Sea remains a global commons.
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
Additionally, both Vietnam and India are heavily dependent on
maritime routes to sustain their economic vitality. Their geographical
positioning confers upon them the responsibility of safeguarding interna-
tional sea lines of communication in the Indian and Pacic Oceans, inclu-
ding the South China Sea. India’s Maritime Military Strategy of 2015—as
well as its earlier version in 2007explicitly identies the South China
Sea as a region of strategic interest. As such, New Delhi is a stakeholder
in the evolving security dynamics of the South China Sea.
As a result, the East Sea has become an inseparable part of Indias
security necklace (Anh & Van, 2017). This has provided an impetus for
New Delhis strong intervention in the region to prevent a scenario whe-
re the entire East Sea falls under Chinas control, directly threatening
India’s vital interests along the maritime routes passing through the East
Sea. According to Huynh Tam Sang’s (2022) study on the drivers behind
India’s intervention in the East Sea: “The main factors driving Indias presen-
ce in the East Sea are the rise of China in the disputed waters, Indias pragmatic
interests in those waters, and the increasing strategic weight of the Indo-Pacic
region.
Therefore, Chinas “hegemonic”4 actions have led to the vigilance
of Indian leaders, prompting New Delhi to intervene in this region to
protect its interests and curb Beijings “hegemonic” ambitions in the coas-
tal areas of Southeast Asia. As a result, India has strengthened defense
and security cooperation with Vietnam and engaged in East Sea issues
with three main objectives: (1) Ensuring peace, stability in the region and
keeping vital maritime routes open and free; (2) Building and maintai-
ning a close relationship with Vietnam to curb the scope of Chinas ex-
panding power in the East Sea and Southeast Asia regions, counterbalan-
cing China’s strategies to encircle and contain India in South Asia and the
Indian Ocean; (3) Increasing Indias presence in the East Sea region with
the desire to demonstrate its rising power status with a peaceful tenden-
cy, in contrast to Chinas assertiveness.
Prior to establishing the CSP (9/2016), defense and security coopera-
tion between Vietnam and India had achieved notable successes through
statements, memoranda of understanding, and leadership visits between
the two countries in the past. Before upgrading to the CSP, in 1980, India
opened a Defense Attaché Oce in Vietnam. In return, Vietnam opened
a Defense Attaché Oce in India in 1985. During the visit of Defense
Minister George Fernandes to Vietnam in 2000, the two sides signed a
Defense Cooperation Agreement, creating a more comprehensive me-
chanism for regular discussions between the two countries Defense
Ministers, joint naval exercises between the two navies and coast guard
forces, as well as India assisting in training pilots for Vietnam (Ha, 2019,
p. 215). The year 2003 marked a new development in defense and security
cooperation when the two sides signed the “Joint Declaration on the
Comprehensive Cooperative Framework between the Socialist Republic
of Vietnam and the Republic of India”, in which defense and security coo-
peration was seen as a key pillar in the relationship between the two cou-
ntries (Mai & Hang, 2021). The July 2007 Strategic Partnership Agreement
further solidied this relationship by providing a framework to enhance
4. The term ‘hegemonic ambitions’
is widely used in studies and analy-
tical writings on China’s policies and
strategies to describe its aspirations to
expand dominant influence and exert
regional control. Example, Articles on
Peace Diplomacy (2025), OFCS (2024),
DW (2019), and IGI Global (2023) all use
this phrase to describe China’s actions
and policies in the Indo-Pacific region.
61
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
cooperation in the defense sector. The agreement commits both coun-
tries to strengthen their ties across political, security, defense, cultural,
scientic, and technological domains. Civil nuclear cooperation, regional
security enhancement, counterterrorism collaboration—including ad-
dressing transnational crime and drug tracking challenges—are inte-
gral components of this strategic partnership. According to Ha (2019, p.
217), during the period spanning from 2005 up to 2007, Vietnam sent over
100 military ocers to participate in training programs at Indian defense
institutions and educational facilities. In June 2005, the Indian Navy faci-
litated the transportation of 150 tons of military equipment intended for
Vietnams Petya submarine chasers and Osa-II missile boats.
In 2013, representatives from the two Defense Ministries signed the
Agreement on Mutual Protection of Classied Information Exchange
and Memorandum of Understanding on Training of Vietnamese Navy
and Air Force Ocers”, with both leaders agreeing on the “determination
to jointly maintain peace, stability, freedom of navigation in the East Sea,
not using or threatening to use force, and resolving disputes through pea-
ceful negotiations based on international law, including UNCLOS” (Ha,
2019, p.230). During Prime Minister Nguyăn Tăn Dăng’s visit to India in
October 2014, Prime Minister Narendra Modi remarked: “Our defense
cooperation with Vietnam is among our most important partnerships.
India remains committed to the modernization of Vietnam’s defense and
security forces. This commitment includes expanding our already subs-
tantial training programs, conducting joint exercises, and cooperating
on defense equipment”. In May 2015, the Defense Ministers of the two
countries signed the “Joint Vision Statement on Vietnam-India Defense
Relations for the Period of 2015-2020”, and also signed a “Memorandum
of Understanding between Vietnam and India on cooperation and coordi-
nation in preventing and combating transnational crimes and terrorism”.
The aforementioned statement was built on the previous defense and se-
curity cooperation mechanisms and procedures between the two coun-
tries, reecting the development trend in expanding the comprehensive
strategic relationship between India and Vietnam, facilitating enhanced
defense and security cooperation across the three main services: army,
navy, and air force; at the same time, the two sides have strengthened coo-
peration in important areas such as military training, capacity building,
and support for defense industry development. In addition, the two sides
have signed a “Cooperation Program on United Nations Peacekeeping
Operations” and a “Technical Agreement on Sharing of Non-Military
Maritime Information” (Lan, 2018).
Defense and security cooperation between India and Vietnam was
elevated to a new level during Prime Minister Narendra Modis State visit
from September 2-3, 2016 to upgrade relations to a CSP with Vietnam.
Here, Prime Minister Narendra Modi approved a $500 million Defense
Line of Credit (LoC) for Vietnam (Neelakanta, 2016), aimed at strengthe-
ning bilateral defense and security ties, in line with the common interests
of the two countries in maintaining a secure, peaceful and prosperous
environment in the region, kicking o the rst important area of coope-
ration under the CSP between New Delhi and Hanoi. Immediately upon
62
estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
returning to India after his visit to Southeast Asian countries, according
to reports, Prime Minister Narendra Modi instructed Brahmos Aerospace
to expedite the delivery of Brahmos missiles to the Vietnamese Air
Force (Lan, 2018). By 2017, Vietnam and India had negotiated Indias sale
of Akash surface-to-air missiles to Vietnam, while signing the “Action
Program for the 2017-2020 Period, which emphasized that the two sides
need to maintain defense and security cooperation, continue to expand
training programs, technical support, preferential credit provision, and
strengthen cooperation in responding to current traditional and non-tra-
ditional security challenges for the interests of the two countries as well
as contributing to building a peaceful, stable, cooperative and develop-
ment environment in the region and globally (Trong, 2017).
In January 2018, on the sidelines of the ASEAN-India
Commemorative Summit marking 25 years of ASEAN-India Dialogue
Relations and the 69th Republic Day of India, Prime Ministers Nguyen
Xuan Phuc and Narendra Modi held talks to promote bilateral coope-
ration, in which both sides proposed “strengthening defense and security
cooperation, urging relevant ministries and sectors to make eorts to overcome
obstacles in the bilateral cooperation process (Dung, 2018). Also in January
2018, the two countries held their rst joint exercise under the framework
of the United Nations Bilateral Peacekeeping Field Training Exercise
in Jabalpur, India. In August 2018, Senior Lieutenant General Nguyen
Chi Vinh and the Indian Defense Secretary discussed the purchase of
the Akash missile system and Dhruv helicopters for the Vietnamese Air
Force, helping enhance the military strength of the Vietnamese Air Force
and creating a deterrent capability against regional adversaries (Linh,
2018).
From June 8-10, 2022, Indian Defense Minister Rajnath Singh visi-
ted Vietnam to hand over 12 high-speed guard boats under a $100 mil-
lion credit line to the Vietnamese Navy, and also signed the Joint Vision
Statement on India-Vietnam Defense Partnership towards 2030 and a
Memorandum of Understanding on Mutual Logistics Support, aiming to
expand the scope and scale of bilateral defense and security cooperation
(Saha, 2022). This event marked an important breakthrough in India-
Vietnam defense cooperation, helping to deepen and substantiate the
two sides’ cooperative relationship. On June 17, 2023, during the ocial
visit of Vietnamese Defense Minister Phan Van Giang to India, the Indian
Defense Ministry gifted the missile escort ship INS Kirpan to Vietnam,
stating: “This is a testimony to India’s commitment to support friendly nations
to enhance their position and maritime defense capabilities based on the Security
and Growth for All in the Region (SAGAR) initiative” (Thu, 2023).
On July 24, 2023, Indian Navy Admiral Hari Kumar visited and
worked with Vietnams Ministry of National Defense; at this event, the
two sides discussed naval training cooperation and armed that defense
and security cooperation plays an important role, serving as a bridge for
the two countries to support and draw closer to each other (Khanh &
Tuan, 2023). On December 11, 2023, the Vietnamese Ministry of National
Defense, in coordination with the Indian Ministry of Defense, organi-
zed the 2023 Vietnam-India Bilateral United Nations Peacekeeping Field
63
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
Training Exercise, which contributed to enhancing solidarity and pro-
moting substantive Vietnam-India defense and security cooperation
(Thanh, 2023). This shows that defense and security cooperation bet-
ween the two countries in the 2016-2023 period has achieved positive re-
sults and helped both countries strengthen their defense capabilities in
the face of new era challenges. Both sides have agreed to continue streng-
thening defense and security cooperation in the spirit of the “Joint Vision
Statement on Vietnam-India Defense Partnership Towards 2030”. These
events demonstrate that Vietnam occupies a very important position in
India’s AEP under Prime Minister Narendra Modi, through which India-
Vietnam relations will become an important link in increasing inuence
and curbing China’s “hegemonic” ambitions in Southeast Asia.
The fourth India-Vietnam Maritime Security Dialogue took place
in Hanoi in August 2024, focusing on enhancing cooperation in areas
such as marine scientic research, ocean economy, humanitarian assis-
tance and disaster relief (HADR), as well as strengthening coordination
between the two countries’ navies and coast guards (Aairs, 2024). Both
sides exchanged views on measures to protect critical sea lines of commu-
nication, particularly in the East Sea, which faces numerous challenges
related to freedom of navigation and adherence to international law.
Earlier, in 2023, India transferred the missile corvette INS Kirpan to
Vietnama symbolic step in enhancing Vietnam’s defense capabilities
(Singh, 2024). With access to advanced technologies such as radar, missile
systems, and maritime equipment produced by India, Vietnam can acqui-
re high-quality defense products at competitive prices, while bolstering
its self-defense capacity amid a complex geopolitical environment. For
India, this initiative forms part of its domestic defense industry develo-
pment strategy, aligned with the “Make in India” policy. This initiative
not only helps India reduce its dependence on defense imports but also
arms its role as a reliable partner in exporting military equipment to
strategic partners like Vietnam.
Additionally, visits by Indian warships such as INS Delhi and INS
Satpura to Da Nang have contributed to consolidating bilateral defen-
se relations and enhancing naval coordination between the two forces
(Singh, 2024). Within the ASEAN framework, both countries have par-
ticipated in maritime exercises aimed at improving interoperability and
responding to maritime security threats in the region.
Cooperation between India and Vietnam in regional forums such
as ASEAN and the East Asia Summit (EAS) continues to be promoted
through various concrete initiatives, especially in upholding a rules-based
regional order and restraining unilateral actions by China. This is also a
space where members of the Quadrilateral Security Dialogue (QUAD)
play an active role, facilitating Vietnams engagement in regional security
cooperation (Pant, 2022).
At the 20th ASEAN-India Summit and the 18th East Asia Summit
in September 2023, the Indian Prime Minister rearmed India’s com-
mitment to a free, open, and rules-based Indo-Pacic region. India and
Vietnam jointly support these principles and call for enhanced mariti-
me cooperation to ensure regional security and stability. Prime Minister
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
Modi also emphasized ASEAN’s central role in the regional architectu-
re, promoting interaction between Indias Indo-Pacic Oceans Initiative
(IPOI) and ASEAN’s Outlook on the Indo-Pacic (AOIP). This clearly re-
ects Indias stance on elevating ASEAN’s centrality within the QUAD
vision.
India’s role in the QUAD is evident in several dimensions. First,
India has strengthened strategic cooperation with QUAD member sta-
tes to counterbalance China’s growing inuence in the region. Events
such as the Doklam stando (2017) and the Ladakh border conict (2020)
have propelled India to take a more active role in multilateral security
structures. Second, India participates in joint naval exercises, notably the
Malabar exercises, to enhance coordination and readiness to protect cri-
tical sea lanes. Third, India advances non-military initiatives within the
QUAD framework, including cybersecurity, climate change, and huma-
nitarian assistance—areas with potential for cooperation with Vietnam.
From Vietnam’s perspective, support for a rules-based regional or-
der, the protection of freedom of navigation, and peaceful dispute resolu-
tion in the East Sea under the United Nations Convention on the Law of
the Sea (UNCLOS) demonstrate strategic alignment with QUAD’s core
objectives. In this context, the QUAD provides a potential platform for
India and Vietnam to deepen cooperation—not only in security but also
in economic and sustainable development—contributing to regional sta-
bility and strategic balance.
5 INDIA HAS STRENGTHENED ECONOMIC COOPERATION WITH
VIETNAM WITH THE AIM OF BUILDING AN ECONOMIC CORRIDOR
EXTENDING FROM SOUTH ASIA TO THE EAST SEA AND EXPANDING
TO THE COUNTRIES IN THE PACIFIC REGION
In the context of globalization and deep integration among econo-
mies in the region and the world, enhancing economic cooperation bet-
ween India and Vietnam has become an important trend in the foreign
policies of both countries, especially since the AITIG was signed in 2009.
July 24, 1991 is considered an important milestone in India’s economic
history, when the New Delhi government comprehensively reformed the
economy towards openness, liberalization and international integration
after a long period of pursuing an inward-looking, self-sucient econo-
mic model that India applied before the end of the Cold War era (Singh,
2019). Therefore, to strengthen cooperation with countries in the region,
especially with ASEAN, Indian Prime Minister Narasimha Rao (1991-
1996) introduced the LEP in 1991 with the aim of enhancing economic
relations between countries in the region, and comprehensively develo-
ping and deeply integrating with ASEAN economies.
Vietnam played the role of an intermediary linking India with the
East Sea and extending towards the major economies of Northeast Asia,
the island countries of Southeast Asia, and Oceania (Paode, 2013). This
created an economic leverage for the development of the remote and im-
poverished Northeast region in particular, and the Indian economy in ge-
neral. Therefore, strengthening cooperation between India and Vietnam
65
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
is not simply a measure to promote strategic and political development,
but also has economic development signicance, especially when both
countries are undergoing comprehensive economic reforms, pursuing a
peaceful, stable and prosperous regional order that aligns with the com-
mon interests of the two countries. During Prime Minister Narasimha
Rao’s visit to Vietnam on September 7, 1994, he emphasized that: India
supports Vietnams reform eorts and considers Vietnam a particularly impor-
tant partner. Therefore, India wishes to strengthen cooperation with Vietnam in
allelds” (Paode, 2013).
Thus, the economic corridor originating from South Asia to the
East Sea and expanding to the Pacic region has positioned India and
Vietnam at the two ends of the link between the two regions, creating
favorable conditions for the two countries to cooperate in many areas,
especially in the economic eld. Vietnam and India have enjoyed a close
political relationship since the two countries gained independence and
ocially established diplomatic relations on January 7, 1972.
However, despite the close political ties, economic cooperation
was not a priority in the bilateral relationship between the two coun-
tries until 1991. This stemmed from two main reasons: (1) Both coun-
tries pursued inward-looking, self-sucient economic models; (2) Both
countries fell into political instability, with Vietnam embroiled in war
circumstances, while India had to deal with ethnic crises. Therefore, af-
ter Prime Minister Narasimha Rao reformed the economy towards open-
ness, integration, and liberalization, and introduced the LEP in 1991, this
marked the rst milestone in the economic cooperation between India
and Vietnam. In 1992, India and Vietnam established extensive econo-
mic relations in areas such as oil and gas exploration, agriculture, and
manufacturing (Son, 2022). To promote bilateral trade and investment,
the India-Vietnam Business Council was established in 1993. By 1997, the
two countries elevated their trade partnership through the signing of
the Bilateral Investment Promotion and Protection Agreement (BIPPA).
Entering the 21st century, Vietnam-India relations witnessed signicant
progress in both breadth and depth. In particular, bilateral trade relations
were strongly boosted as the two countries opened up and liberalized
their economies.
The comprehensive partnership between Vietnam and India has
undergone a remarkable development process over the past two deca-
des. In 2003, the two countries issued a Joint Declaration establishing the
Comprehensive Partnership, followed by the establishment of a Strategic
Partnership in 2007. The signing of the AITIG in 2009 facilitated trade ex-
changes between the two countries through tari preferences (Uyanaev,
2022). Additionally, the Maritime Transport Agreement (AST) signed in
July 2014 laid the legal foundation for maritime and shipping coopera-
tion between the two sides (Lan, 2018). In 2016, bilateral relations were
upgraded to a CSP. Since then, economic cooperation between Vietnam
and India has witnessed strong and comprehensive development. Most
recently, in December 2022, the two countries signed a Memorandum of
Understanding on Cooperation in the Energy and Mineral Resources sec-
tors, creating a legal basis to promote cooperation in these crucial areas
66
estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
(Vietnam Government Newspaper, 2023). Furthermore, Vietnam and
India also cooperate based on other important agreements such as the
Mekong-Ganga Cooperation Initiative (MGC). The development of the
partnership between the two countries is partly due to Vietnam oering
an attractive business environment for Indian companies, with political
stability, economic reforms, a large consumer base, and strategic access
to ASEAN and Pacic markets.
Table 1: Import-export turnover between Vietnam and India in the period 1991 - 2023
Unit: million USD
1991 2001 2007 2016 2017 2018 2019 2020 2021 2022 2023
Export 24 228 1357 2687 3759 6543 6672 5235 6280 7961 8500
Import 5.5 45 180 2745 3940 4147 4528 4435 6963 7086 5860
Balance of trade 18.5 183 1177 -58 1812 2396 2144 800 -683 875 2640
Total exports and imports 29.5 273 1537 5432 7698 10690 11200 9670 132430 15048 14360
Source: Compiled by the author from the General Department of Customs (Vietnam)
Through the data from Table 1, it shows that the bilateral trade tur-
nover between the two countries is increasing, reaching $29.5 million in
1991; $273 million in 2001, an increase of nearly 9.3 times; $1,537 million in
2007; $7,698 million in 2017, an increase of 5 times compared to 2007 and
an increase of 261 times compared to 1991; nearly $15,048 million in 2023
and an increase of about 510 times compared to 1991. This gure slightly
decreased in 2023 to $14,360 million due to the impact of a sharp decline
in domestic demand due to the global economic recession. Vietnam’s tra-
de balance was in surplus during this period, increasing from $58 million
in 2016 to $2,640 million in 2023. This shows that Vietnam’s trade surplus
with India is increasing. In general, the scale of Vietnam-India trade has
grown rapidly after the two countries established a CSP in 2016. This
economic engagement is not merely transactional—it plays a strategic
role in shaping Vietnam’s broader foreign policy orientation. As Vietnam
diversies its trade partners to reduce economic dependence on China,
India emerges as a reliable and complementary partner. This diversica-
tion aligns with Vietnam’s desire to maintain strategic autonomy in the
face of China’s assertiveness in the East Sea. In this context, economic
cooperation with India functions as a form of “soft balancing,” whereby
deeper economic ties provide a foundation for broader strategic collabo-
ration without provoking overt military confrontation.
In terms of merchandise trade, India is Vietnams 8th largest tra-
ding partner, while Vietnam is Indias 23rd largest trading partner in the
world and 4th largest in the ASEAN region (Vietnamese Government
Newspaper, 2023). Some of Vietnams main export items to India inclu-
de phones, computers, auto parts, coee, pepper...; imports from India
include coal, vegetable oils, iron and steel, machinery, dyes.. (Vietnam
Ministry of Industry and Trade, 2023). This indicates that the two eco-
nomies possess distinct strengths and comparative advantages, thereby
facilitating eective trade cooperation and complementing rather than
67
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
directly competing with each other. Furthermore, according to the
theory of trade complementarity, when two countries exhibit comple-
mentary export-import structures, the potential for bilateral trade gro-
wth is higher. The complementarity in product composition between
Vietnam and India not only enhances bilateral trade volume but also
lays the foundation for deeper economic cooperation, promotes the de-
velopment of regional and global value chains, and elevates both cou-
ntries’ positions within multilateral free trade agreements such as the
ASEAN-India Free Trade Area (AIFTA). For these reasons, the current
trade structure between the two nations is regarded as highly comple-
mentary and holds signicant potential for further development. The fact
that Vietnam and India are important trading partners for each other re-
ects their complementary and mutually supportive economic relations.
Specically, “Vietnams GDP per capita of $4,110 is higher than Indias $2,500.
Meanwhile, Vietnams debt-to-GDP ratio (%) is signicantly lower than Indias
at 46.7% compared to 73.95%, showing a lower degree of dependence on foreign
countries (Uyanaev, 2022). Additionally, the ination rate in Vietnam is
lower than in India at 3.21% compared to 4.25%, which can partly ensure
price stability of raw materials and other costs - an important factor in
times of instability (Van, 2022).
Moreover, Vietnam has a slightly lower corporate tax rate of 20%
compared to Indias 25.17%, helping businesses pay lower taxes (Uyanaev,
2022). Indeed, Vietnam has demonstrated exibility in the face of the
Covid-19 pandemic by quickly introducing attractive corporate tax rates
for large corporations wishing to relocate to Vietnam. For example, “for
eligible large-scale manufacturing projects, the preferential corporate income tax
rates of 10% and 20% will be applied for 15 or 10 years respectively (Thuy,
2023, p. 196). Foreign businesses also hope that Vietnam will avoid cur-
rency risk with low exchange rate volatility. In contrast, the Indian Rupee
is considered a “freely oating currency” with a market-determined ex-
change rate. In addition, in terms of market size, India may easily surpass
Vietnam. However, economists also look at the export similarity index,
which measures the overlap between countries export baskets and thus
their export competitiveness. According to this index, Vietnam has an
export basket most similar to China’s, indicating that it can benet more
from replacing Chinas export basket. As a result, although Indias eco-
nomic structure is signicantly larger, leading to other benets such as
cheap labor and a large market, Vietnam enjoys notable advantages that
help promote stability for investors, despite global volatility.... Thus, the
two countries do not compete but complement each other in the global
value chain. This is a healthy model of economic cooperation, mutually
benecial for the common prosperity of the two countries. The fact that
Vietnam ranks 4th in exports to India in ASEAN also shows that Vietnam
has certain competitive advantages. Therefore, trade relations between
Vietnam and India can be further strengthened in line with their CSP
role in the future.
In terms of investment, as of 2023, India currently has over 400 va-
lid investment projects in Vietnam with a total registered capital of about
$1 billion, ranking 26th out of 141 countries and territories investing
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estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
in Vietnam, with Indian investment focusing on oil and gas, mining,
energy, textiles, agricultural processing,... (Vietnam Peoples Police
Newspaper, 2023). Notable Indian corporations and companies inves-
ting in Vietnam include ONGC Videsh (OVL), Venkateswara Hatcheries,
Ruchi Industries, United Phosphorus,... Among them, OVL and Essar
Oil have provided and are providing oil and gas exploration services in
Vietnam along with Petrovietnam (Liem & Thao, 2021, p. 319). In return,
Vietnam also has about 6-9 investment projects in India with a total capi-
tal of about $28 million (Anh, 2022). Vietnamese businesses mainly invest
in India in agriculture, agricultural processing and supporting industries.
The two countries also focus on infrastructure connectivity and trade
facilitation. The launch of direct ights between Vietnam and India in
2022 demonstrates strong political will to promote economic, cultural
and people-to-people exchanges between the two countries. In addition,
both sides have made and are making eorts to build seaports in strate-
gically important regions to increase maritime connectivity capabilities
such as Van Phong Port (Vietnam), Chabahar Port (India)...
Economic cooperation between India and Vietnam in 2023 has
made signicant progress compared to its inception in 1991. The rapid
growth of both economies, coupled with shared interests in bilateral and
multilateral cooperation, has created a favorable foundation for increasin-
gly deep economic and political relations. In this context, India envisions
its partnership with Vietnam as forming a dynamic and prosperous eco-
nomic corridor connecting South Asia with the East Sea and extending
to markets across the Pacic region. Indias decision to withdraw from
the Regional Comprehensive Economic Partnership (RCEP) in 2019 did
not diminish trade relations; rather, it prompted India to focus more on
bilateral agreements, including cooperation with Vietnam.
In the energy sector, India has made substantial investments in
Vietnamese energy projects while supporting infrastructure develop-
ment aligned with Vietnams development goals without creating econo-
mic dependence. Moreover, both India and Vietnam share the strategic
objective of reducing reliance on China within supply chains. According
to Bích (2021), “Vietnam is striving to diversify its trade partners regio-
nally and globally to reduce its increasingly serious dependence on the
Chinese economy.” This opens new opportunities for closer cooperation
between the two countries in strategic areas such as energy and trade.
Additionally, India maintains its commitment to ASEAN through initia-
tives like the ASEAN-India Free Trade Agreement (AIFTA), which has
reinforced economic ties with Vietnam and supported Vietnams regional
integration and sustainable development process.
However, IndiaVietnam relations face challenges, most notably
the growing competition from China. Chinas Belt and Road Initiative
(BRI)a large-scale infrastructure project connecting China with cou-
ntries across Asia, Europe, and Africa—has expanded its inuence in
Vietnam, raising Indian concerns about Vietnams increasing economic
dependence on China, potentially undermining Vietnams sovereignty.
Nevertheless, Vietnam has approached the BRI selectively and cautiou-
sly, aiming to leverage economic development opportunities without
69
Tran Xuan Hiep, Le Hoang Kiet, Phan Thi Hai Yen A políca de olhar para o leste da Índia: o papel fundamental do Vietnã em meio à inuência regional crescente da China
compromising national sovereignty. Simultaneously, this engagement
facilitates New Delhis inuence through the Act East Policy (AEP) and
multilateral initiatives such as the Mekong-Hoang Ha Cooperation and
the Indo-Pacic Economic Framework (IPEF). These frameworks oer
alternatives to the BRI, emphasizing sustainable development and res-
pect for national sovereignty. By promoting transparent and responsible
development initiatives, India not only strengthens its partnership with
Vietnam but also helps shape a more balanced and sustainable regional
order to counter China’s expanding inuence in Southeast Asia.
Vietnam currently faces serious challenges due to Chinas increa-
singly assertive actions in the East Sea. In this context, Hanoi has proac-
tively established and reinforced strategic partnerships with major po-
wers sharing common interests in the region, including India, the United
States, Japan, South Korea, and Australia. The consensus among these
countries to restrain Chinas hegemonic ambitions forms a crucial ba-
sis for building a stable and prosperous regional security environment.
On this foundation, the strategic partnership between India and Vietnam
continues to be consolidated and developed, reecting strategic align-
ment amid Chinas rising power and the accompanying security challen-
ges in the East Sea region.
In the context of intensifying strategic competition between India
and China, Vietnam has emerged as a key partner in Indias AEP. The
IndiaVietnam cooperation extends beyond defense and security to en-
compass economic, cultural, and political domains. This relationship is
built on a foundation of historical ties, friendship, and mutual trust, dri-
ven by shared interests in maintaining peace, stability, and freedom of
navigation in the Indo-Pacic region.
6 CONCLUSION
This article explores the evolving dynamics of Indias AEP, focu-
sing on Vietnam’s strategic role within this framework. While Chinas in-
creasing assertiveness in the East Sea undeniably shapes India’s regional
calculations, ndings indicate that India’s engagement with Vietnam is
driven by a range of motivations extending well beyond mere geopoliti-
cal balancing.
Firstly, economic cooperation has become a cornerstone of stra-
tegic engagement, with rising bilateral trade and investment fostering
interdependence and regional stability. Vietnam’s position as a maritime
gateway and rapidly growing economy aligns with Indias objectives of
market diversication and connectivity to the Pacic.
Secondly, historical and cultural linkages between the two coun-
tries provide normative direction and soft power to the partnershipcon-
sistent with India’s broader narrative of civilizational ties with Southeast
Asia.
Thirdly, deepening defense and security cooperation reects con-
vergent interests in maritime domains, freedom of navigation, and re-
gional stability—without necessarily provoking overt confrontation with
China.
70
estudos internacionais • Belo Horizonte, ISSN 2317-773X, v. 12, n. 3, (dez. 2024), p. 51-73
Thus, Vietnam emerges as a vital and multifaceted partner in
India’s Indo-Pacic vision, not only as a counterbalance to China but also
as a promoter of a stable multipolar regional order. The IndiaVietnam
partnership exemplies how economic pragmatism, cultural diplomacy,
and strategic cooperation can converge in pursuit of shared development
and security goals. Indias AEP, with Vietnam as a key pillar, demonstra-
tes Indias strategic recalibration to address Chinas rise and safeguard its
national interests. This cooperation benets both countries and contribu-
tes to regional stability and prosperity.
However, IndiaVietnam relations also face signicant challenges,
including competition from China and diering perspectives on certain
regional issues. To overcome these challenges, both countries need to
continue enhancing dialogue, building trust, and exploring new areas
of cooperation. Therefore, further research is warranted to examine
Vietnams expanding role within Indias broader Indo-Pacic architectu-
re, including initiatives such as the Quad and the India-ASEAN Maritime
Dialogue. Moreover, analyzing how India balances strategic competition
with China while engaging Vietnam may provide valuable insights into
emerging norms of asymmetric cooperation in regional geopolitics.
The re-election of Prime Minister Narendra Modi for a third term
(Modi 3.0) marks a continuation and likely expansion of the Act East
Policy—an essential pillar of Indias foreign policy. Amid rapidly shifting
geopolitical dynamics, India–Vietnam relations are expected to deepen
both strategically and across multiple sectors. Under this new term, India
is likely to expand military training programs, defense equipment su-
pport, and defense technology sharing with Vietnam. Shared concerns
over maritime security and freedom of navigation in the East Sea will con-
tinue to underpin bilateral and multilateral naval exercises. Furthermore,
Vietnam is emerging as a key regional partner. Priority areas for bila-
teral economic cooperation include renewable energy, information te-
chnology, electronics manufacturing, and logistics. Consequently, India
may strengthen its commitment to advancing sustainable supply chains
and market diversication. The Modi 3.0 administration is also expec-
ted to enhance coordination with Vietnam through regional mechanis-
ms such as ASEAN, the India-ASEAN Forum, the Mekong-Hoang Ha
Cooperation, and regional initiatives like the Free and Open Indo-Pacic
(FOIP). These eorts will not only help balance Chinas inuence but also
reinforce Vietnam’s central role in India’s Southeast Asia strategy.
In conclusion, as India seeks to counterbalance Chinas inuen-
ce and protect its strategic interests in the Indo-Pacic, Vietnam has
emerged as a crucial partner. The consolidation of the Comprehensive
Strategic Partnership (CSP), underpinned by shared maritime concerns
and economic interests, will shape the regional balance of power and con-
tribute to a free, open, and inclusive Indo-Pacic order.
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