INDIA AND VIETNAM SIGN MUTUAL LOGISTICS AGREEMENT

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Context:

• India and Vietnam signed a Memorandum of Understanding (MoU) on mutual logistics support during the ongoing visit of Defence Minister Rajnath Singh to the Southeast Asian nation.

More on the news:

• The Defence Ministers signed the ‘Joint Vision Statement on India-Vietnam Defence Partnership towards 2030’, which will significantly enhance the scope and scale of existing defence cooperation.
• India has signed several logistics agreements including with all Quad countries, France, Singapore and South Korea beginning with the Logistics Exchange Memorandum of Agreement with the U.S. in 2016.
• Logistics agreements are administrative arrangements facilitating access to military facilities for exchange of fuel and provisions on mutual agreement simplifying logistical support and increasing operational turnaround of the military when operating away from India.
• Both Ministers also agreed for early finalisation of $US 500 million Defence Line of Credit extended to Vietnam.
• Indian defence minister also announced gifting two simulators and a monetary grant towards setting up of Language and IT Lab at Air Force Officers Training School for capacity building of Vietnamese armed forces.

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Background:

India and Vietnam, with historical roots in the common struggle for liberation from colonial rule and the national struggle for independence, share traditionally close and cordial bilateral relations. Mahatma Gandhi and Ho Chi Minh, regarded as the Father of Nation in India and Vietnam respectively, led people in their heroic struggle against colonialism in the two countries. India was the Chairman of the International Commission for Supervision and Control (ICSC), which was formed pursuant to the Geneva Accord of 1954 to facilitate the peace process in Vietnam. India initially maintained Consulate-level relations with the then North and South Vietnams and later established full diplomatic relations with unified Vietnam on 7 January 1972. Relations between the two countries were elevated to the level of ‘Strategic Partnership’ during the visit of Vietnam’s Prime Minister Nguyen Tan Dung to India in July 2007. In 2016, during Prime Minister Modi’s visit to Vietnam, bilateral relations were further elevated to a “Comprehensive Strategic Partnership”.

Political Relations

In the context of COVID-related travel limitations, Prime Minister Shri Narendra Modi and Prime Minister Mr. Nguyen Xuan Phuc held the first ever India-Vietnam Virtual Summit on 21 December 2020, during which they adopted a historic “Joint Vision for Peace, Prosperity and People” to guide the future development of bilateral relations.

Trade And Economic Cooperation

• According to Indian statistics, during Financial Year (FY) April 2020 – March 2021, bilateral trade between India and Vietnam reached US$ 11.12 billion, with Indian exports to Vietnam amounting to US$ 4.99 billion and Indian imports from Vietnam at US$ 6.12 billion.
• In FY 2020-21, for India, Vietnam was the 15th largest trading partner globally and the 4th largest within ASEAN, following Singapore, Indonesia and Malaysia. For Vietnam, on the other hand, India was the 10th largest trading partner globally.
• Under the Mekong Ganga Cooperation (MGC) framework, India has been taking up Quick Impact Projects (QIPs), each valued at US$ 50,000, in different provinces of Vietnam for development of community infrastructure.

Cultural Cooperation

• The Swami Vivekananda Indian Cultural Centre (SVCC) was established in Hanoi in 2016 to promote a comprehensive understanding of India and to foster closer links between peoples of both countries through cultural exchanges.
• 2019 was celebrated as the ASEAN- India Year of Tourism.
• Vietnam has been a large recipient of training programmes under Indian Technical and Economic Cooperation (ITEC) programme.
• An estimated 5500 people from India, including some short-term visitors, constitute the Indian community in Vietnam.

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