The visit is also a chance for Vietnam and India to adopt measures to promote their comprehensive relationship as well as facilitating business deals.

The traditional friendship between Vietnam and India originates from their common historical links in culture, religion and trade. It was established and fostered by President Ho Chi Minh and Prime Minister Jawaharlal Nehru and by other generations of leaders and people of the two countries.

The traditional friendship and comprehensive cooperation between Vietnam and India has developed significantly since the two countries established their diplomatic ties at an ambassadorial level on January 7, 1972. Vietnam has received valuable assistance from India in its post-war reconstruction process and its current economic development.

Bilateral ties in politics, security and national defence have also developed well through high-level visit exchanges.

Economically, two-way trade has increased by 20 percent per annum in recent years from US$375 million in 2002 to US$1.005 billion in 2006. Vietnam mainly exports coffee, coal, pepper, rubber, electronic products and footwear to India, and imports cattle feed, raw materials, metals, plastics, medicines, machinery equipment, garment and pharmaceutical accessories, chemicals and pesticides from the South Asian country. Both countries are trying to reduce Vietnam’s import surplus and raise bilateral trade to US$1.5-2 billion in the next two or three years.   

The year 2007 marked a breakthrough in India’s investment in Vietnam. In February, Essar group agreed a US$527 million project to produce hot rolled steel in southern Ba Ria-Vung Tau province. Three months later, Tata group signed a memorandum of understanding with the Vietnam Steel Corporation to build a steel plant in central Ha Tinh province and exploit the Thach Khe iron ore mine. With the two projects, India became one of Vietnam’s top ten investors, and Vietnam became India’s biggest investment recipient in Southeast Asia.

In its policy, the Indian government has provided preferential credit loans for the Vietnamese government. By December 31, 2006, total Indian credit loans were valued at US$46.77 million.

India has also helped Vietnam train specialists, PhDs and MAs in agriculture, information technology and nuclear energy.

The two countries have conducted exchanges of art troupes and performances under signed agreements. They are preparing for the signing of the Cultural Exchange Programme for the 2007-2009 period.

They have also developed cooperation in other fields such as aviation, tourism, transport, livestock breeding and aquaculture.

Youth and people-to-people exchanges have been conducted through the Vietnam-India and India-Vietnam Friendship Associations.

Vietnam and India have coordinated closely in regional and international forums such as the United Nations, the ASEAN-India Forum, the ASEAN Regional Forum, the East Asia Summit, the Asia-Europe Summit Meeting, the World Trade Organisation, the Ganga-Mekong River Cooperation Framework, and the Non-Aligned Movement.

The current context of globalisation and international integration is providing new opportunities for all countries, including Vietnam and India. Despite challenges, the relations of brotherhood, traditional friendship and comprehensive cooperation between Vietnam and India will further develop.