India, Vietnam upgrade ties; eye USD 25 bn in trade

India and Vietnam are eyeing to scale bilateral trade to USD 25 bn by 2030, following talks between Prime Minister Narendra Modi and Vietnamese President To Lam in New Delhi, as per an External Affair Ministry press release.

Focus areas: Trade between the two countries crossed USD 16 bn in FY 2026, lending a base for expansion as both countries look to diversify supply chains amid global disruptions. A set of 13 agreements were inked by the two countries spanning digital payments, healthcare, education and tourism with a nod towards deeper collaboration in rare earth metals and clean energy.

Why it matters: Vietnam holds the world’s second-largest rare earth reserves, and India’s push for economic security through this partnership suggests a move to secure the raw materials necessary for its domestic EV and semiconductor ambitions without relying on Beijing. Vietnam will also join the Indo-Pacific Oceans Initiative as New Delhi seeks to expand trade linkages in Asia and reduce concentration risks in an increasingly volatile global environment.