- $300 Million Loan for Maritime Security: India proposed a $300 million loan to Vietnam for maritime security, highlighting their strategic partnership and shared interests in countering Chinese expansion.
- Enhanced Military Cooperation: India and Vietnam are strengthening their military ties through joint naval exercises and defense assistance, including transferring BrahMos missiles to the Philippines and INS Kirpan to Vietnam.
- Active Diplomatic Engagement: India has shifted from a neutral stance to active involvement in South China Sea issues, supporting international law and participating in discussions on the 2016 arbitral tribunal ruling.
- Strategic Regional Impact: The deepening India-Vietnam relationship aims to balance Chinese influence in the South China Sea, with increased cooperation likely to influence the broader Indo-Pacific security landscape.
When it comes to international relations, major Indian bilateral conferences, such as Prime Minister Modi’s interactions with Putin, Biden, or Xi Jinping, receive more media attention. The recent visit of the Prime Minister of Vietnam to India garnered global attention, although it did not make as many headlines in Indian media outlets. This important meeting included India’s proposal of a $300 million loan to Vietnam for maritime security, a significant gesture given both countries’ ongoing conflicts with China.
An Evaluation of the Strategic Alliance for Regional Stability
Vietnam is among the countries that have countered Chinese hostilities and has a troubled sea border with China. The Vietnamese Prime Minister also expressed support for India’s peace initiatives in the region during his visit. This meeting highlighted that India and Vietnam are strong allies.
The $300 million credit facility provided is primarily intended to boost maritime security, funding the procurement of defense equipment. This move indicates that India’s regional strategic vision aims to contain China’s territorial expansionist agenda. This offer is not only financial but also a strategic effort to stabilize a key ally in the region. Vietnam’s earlier request to increase the loan amount from a previous $100 million underscores the depth of this partnership.
Strengthening Bilateral Cooperation
Beyond the loan, India and Vietnam continue to enhance their military and strategic relationship. Both countries have faced threats from China and share an interest in maintaining stability. India has conducted naval exercises with the United States, Japan, the Philippines, and Vietnam in the South China Sea and has provided military assistance to these countries. This includes transferring supersonic anti-ship BrahMos missiles to the Philippines and providing the light missile frigate INS Kirpan to Vietnam.
Diplomatic Engagement for Strategic Interests
India’s involvement in the South China Sea has shifted from passive diplomacy to active participation. This includes endorsing international law and engaging in discussions regarding the 2016 arbitral tribunal award. India’s interests include trade and investment relations with ASEAN countries, energy security, and freedom of navigation.
Does India’s Action Raise Questions of Dominance in the South China Sea?
India has been gradually increasing its engagement in the South China Sea, driven by strategic concerns and the desire to contribute to regional peace. Key points include:
Military Cooperation: India has participated in naval drills with the US, Japan, the Philippines, and Vietnam in the South China Sea and has assisted claimant states with military matters. For example, India supplied BrahMos supersonic anti-ship missiles to the Philippines and a light missile frigate to Vietnam.
Diplomatic Engagement: India has moved from a neutral stance on the 2016 arbitral tribunal ruling to active participation in debates and support for international law.
Motivations: India’s trade and investment relations with ASEAN states drive its regional strategy. Energy security and the desire for freedom of navigation are also significant factors explaining India’s activities in the region.
India is making its presence felt but is not expected to become a dominant force in the near future. However, its actions help to assert influence and support regional allies and partners. India’s growing relations with Vietnam and the Philippines suggest an intention to use synergy to counter China in the South China Sea region. These countries, sharing China as a common adversary, are aligning more with India to gain a strategic advantage in the South China Sea. The cooperative relations among these states highlight the complex nature of geopolitics in the region and raise interest in the future of the regional security architecture.
Further Cooperation and Defense Acquisitions
The visit set a new target to elevate bilateral trade to $20 billion in the coming years and hinted at a potential free trade agreement. Additional defense equipment to boost security cooperation is also on the horizon. It is believed that India’s increased line of credit will support these acquisitions and enhance bilateral cooperation between the two countries.
Conclusion
In conclusion, the recent visit of the Vietnamese Prime Minister to India signifies an increase in strategic partnership in South Asia, where tension and rivalry are balanced with economic growth. Vietnam is striving to balance its commitments with China, and increasing defense and technology collaborations will play a major role in determining the future of the Indo-Pacific region. Such relationships, where states cooperate and compete simultaneously, reflect a characteristic feature of contemporary international relations.
The Vietnamese Prime Minister’s visit to India could provoke China. Both India and Vietnam have border issues with China, and India’s recent actions, such as selling BrahMos missiles to neighboring countries like the Philippines and the INS Kirpan missile corvette to Vietnam, highlight its strategic interest in countering Chinese expansion in the South China Sea. From a strategic perspective, this collaboration could significantly impact the relationship between India and ASEAN countries.
Balaji Subramanian 
Palak Dogra 
Aayush Pal