On Wednesday, India and Vietnam upgraded their bilateral relationship to an enhanced comprehensive strategic partnership, with a target of increasing trade to $25 billion by 2030. This announcement came during talks between Indian Prime Minister Narendra Modi and Vietnamese President To Lam, who is on his first official visit to India since assuming office. The discussions resulted in the signing of 13 agreements aimed at fostering collaboration in various sectors, including critical minerals, pharmaceuticals, and digital technologies.

Modi highlighted that Vietnam has been a key partner in India's Act-East policy and emphasized the importance of strengthening defence and security cooperation. Both leaders expressed a commitment to enhancing political trust and economic cooperation. Lam noted that India is a growing hub of innovation and that the two countries would work together to address global challenges, including ensuring freedom of navigation in the Indo-Pacific region.

The agreements include a memorandum of understanding (MoU) on cooperation in critical minerals and another on linking payment systems between the Reserve Bank of India and the State Bank of Vietnam. These initiatives aim to facilitate trade and improve access to Indian agricultural and pharmaceutical products in Vietnam. The partnership is expected to enhance supply chain resilience and economic security for both nations.