top of page

The Price of Dependence: Why India and Vietnam Are Strengthening Their Indo-Pacific Partnership

11m
6 min read

India’s Act East Policy and its MAHASAGAR vision offer broader frameworks for connecting bilateral cooperation with regional engagement. Vietnam’s importance to India’s Southeast Asian outreach extends beyond trade, encompassing maritime security and the preservation of a regional order in which countries retain the freedom to pursue their national interests.


A cinematic geopolitical thumbnail featuring the Indian and Vietnamese flags billowing above a strategic Indo-Pacific seascape, with a modern naval corvette, a cargo ship, glowing global trade routes, a connected digital globe, semiconductor circuitry and ancient Vietnamese Cham temple architecture. The bold headline “THE PRICE OF DEPENDENCE” highlights the importance of economic security and strategic autonomy, with the Economic Diplomacy.in logo in the bottom-right corner.

A country can lose freedom without losing an inch of territory. Sometimes, all it takes is dependence on a supply chain it cannot replace or a maritime route it cannot afford to see disrupted. As economic pressure and technological vulnerabilities shape international relations, national security depends as much on a country’s ability to protect its tactical choices as on its military strength.


This is where India and Vietnam find common ground. Their fourth Security Dialogue, held in New Delhi on October 16, 2026, reflects a shared recognition that security in the Indo-Pacific extends far beyond conventional defence. Co-chaired by India’s Deputy National Security Advisor Pavan Kapoor and Vietnam’s Deputy Minister of Public Security, Senior Lieutenant General Pham The Tung, the meeting covered economic security, maritime cooperation, counter-terrorism and cybersecurity, alongside emerging technologies and regional security concerns.


The significance of the dialogue lies in its wider implications. Both countries recognise that their ability to withstand external pressure will depend on the resilience of their economies and the strength of their security institutions. Goodwill may bring countries to the table, but shared capabilities determine whether they matter when the stakes rise.


Geopolitical Autonomy Begins with Resilience


Economic dependence has become an important instrument of geopolitical influence. Restrictions on critical technologies or essential industrial inputs can constrain a country’s choices without any direct military confrontation. For India and Vietnam, strengthening economic security is therefore essential to preserving autonomy in a rather contested region.


Their growing commercial relationship provides a strong foundation. Bilateral merchandise trade reached USD 18.28 billion in FY 2025–26, registering 15.98 per cent year-on-year growth. Vietnam is India’s fifth-largest trading partner within ASEAN, after Singapore, Indonesia, Thailand and Malaysia, making Hanoi an important economic partner in New Delhi’s Act East engagement.


The next phase should focus on strengthening supply-chain resilience and expanding cooperation in critical minerals, rare earths, energy and advanced manufacturing. Both countries have an interest in reducing excessive dependence on concentrated sources of supply while creating more opportunities for investment and industrial development. Such diversification would strengthen their economic security without undermining the benefits of international trade.


The bilateral trade target of USD 25 billion by 2030 offers a useful measure of ambition, but its real value will depend on the nature of that growth. Greater commercial exchange must translate into more reliable supply chains and stronger industrial links if economic interdependence is to support the wider partnership.


Maritime Security Beyond Diplomatic Assurances


The maritime domain remains central to India–Vietnam cooperation. Vietnam’s geopolitical position along the South China Sea and India’s expanding engagement with Southeast Asia give both countries a shared interest in keeping regional sea lanes open and ensuring that international law remains central to maritime conduct.


Disruptions to commercial shipping can affect energy supplies, manufacturing and trade far beyond the immediate area of tension. Maritime security is therefore directly connected to economic stability, particularly for countries whose development depends on access to international markets. Cooperation between New Delhi and Hanoi can contribute to regional stability by improving maritime awareness and strengthening their ability to protect legitimate interests.


Their defence relationship has already produced tangible results. In 2023, India transferred its indigenously built missile corvette INS Kirpan to Vietnam, demonstrating that the partnership extends beyond diplomatic assurances to practical military cooperation. Continued defence engagement can build on this foundation through information-sharing and closer coordination between relevant institutions.


The objective, however, should be to strengthen regional stability rather than turn bilateral cooperation into an instrument of confrontation. India and Vietnam do not need identical ambitions to recognise that neither should have to surrender its independent choices to external pressure. Their partnership is most valuable when it strengthens their ability to act with confidence while preserving space for diplomacy.


Cybersecurity and the Changing Nature of Threats


The inclusion of counter-terrorism and cybersecurity in the Security Dialogue reflects the changing character of national security. Terrorist networks exploit digital platforms and cross-border financial channels, while cyberattacks can disrupt critical infrastructure without a conventional military confrontation. These threats require sustained cooperation between security institutions because vulnerabilities in one country can have consequences beyond its borders.


India and Vietnam have considerable scope to strengthen information exchange and improve their preparedness for emerging security challenges. Regular consultations must lead to practical cooperation, particularly in areas where technological vulnerabilities can affect essential services or expose sensitive information.


Their regional responsibilities are also expanding. India and Vietnam are set to co-chair the ASEAN Defence Ministers’ Meeting-Plus Experts’ Working Group on Cyber Security for 2027–2030, providing an opportunity to contribute to wider regional cyber-defence cooperation. The arrangement can help connect their bilateral engagement with ASEAN’s broader security priorities.


Its effectiveness will depend on implementation, including sustained institutional engagement and appropriate capacity-building. As digital infrastructure becomes fairly important to economic growth, cybersecurity must remain an integral part of national resilience rather than a separate technical concern.


From Strategic Partnership to Strategic Delivery


The political foundations for deeper cooperation have strengthened considerably. In May 2026, India and Vietnam elevated their relationship to an Enhanced Comprehensive Strategic Partnership during the visit of Vietnam’s Communist Party General Secretary and President To Lam to India. The development provided a stronger framework for advancing cooperation across defence, economic affairs and technology.


In September 2026, Prime Minister Narendra Modi met Vietnamese Prime Minister Le Minh Hung on the sidelines of the BRICS Summit in New Delhi. Their discussions covered a proposed 2+2 mechanism involving their foreign and defence establishments, alongside cooperation in energy, rare earths and space. The two sides also reiterated their ambition to expand bilateral trade to USD 25 billion by 2030.


A 2+2 mechanism, if operationalised, could improve coordination between diplomatic assessments and defence priorities. Cooperation in critical technologies and energy could also strengthen supply-chain resilience while creating new opportunities for investment. These initiatives would give the partnership greater tactical depth, provided political commitments are supported by clear priorities and regular institutional reviews.


India’s Act East Policy and its MAHASAGAR vision offer broader frameworks for connecting bilateral cooperation with regional engagement. Vietnam’s importance to India’s Southeast Asian outreach extends beyond trade, encompassing maritime security and the preservation of a regional order in which countries retain the freedom to pursue their national interests.


The challenge is to ensure that expanding institutional arrangements produce measurable outcomes. The strength of the partnership will ultimately depend on whether both governments can sustain cooperation beyond high-level meetings and translate shared priorities into practical capabilities.


An Old Friendship with a Contemporary Purpose


The India–Vietnam relationship also draws strength from historical and cultural connections that give it a foundation beyond tactical calculations. At Vietnam’s My Son Sanctuary, Indian specialists spent years restoring ancient Cham temples, with the work even bringing a Shiva Linga to light. The episode reflects a cultural connection made tangible through the painstaking preservation of Vietnam’s heritage.


Such historical links provide depth to the relationship, but their continued relevance depends on how both countries respond to present-day challenges. Their partnership must be sustained through stronger institutions, technological cooperation and economic engagement that delivers tangible benefits.


The fourth Security Dialogue, held under the framework established by a 2016 memorandum of understanding between India’s National Security Council Secretariat and Vietnam’s Ministry of Public Security, provides an established channel for continued engagement. Its biennial format allows both sides to review shared concerns and adapt their cooperation as the regional security environment evolves.


The priority now is to translate this continuity into stronger maritime cooperation, more effective cybersecurity engagement and resilient economic links. Neither country needs to abandon its independent foreign policy to achieve these objectives. Their shared interests provide sufficient grounds for cooperation, while strategic autonomy allows each to retain the flexibility required by its own national circumstances.


The Indo-Pacific will remain a region of considerable uncertainty, and India and Vietnam cannot eliminate the pressures that accompany growing geopolitical competition. They can, however, reduce their vulnerabilities by strengthening the capabilities that allow them to respond independently and cooperate when their interests converge.


Ultimately, the value of this partnership will be determined by whether diplomatic trust translates into greater freedom. From the preservation of ancient temples to the transfer of a modern warship, India and Vietnam have demonstrated that their relationship can accommodate both historical connections and contemporary security needs. The task ahead is to ensure that this foundation produces a partnership capable of withstanding the pressures of a changing Indo-Pacific, where the freedom to make independent choices depends on the ability to protect them.

Comments


bottom of page