India and Vietnam have agreed to strengthen their economic ties with an ambitious goal of increasing bilateral trade to USD 25 billion by 2030. This announcement, made by Prime Minister Narendra Modi on May 6, 2026, is part of a new strategic roadmap designed to expand economic and sector-specific cooperation between the two countries. The announcement was made following the signing of several Memoranda of Understanding (MoUs) at Hyderabad House in Delhi by PM Modi and Vietnam's President To Lam.
During a joint press conference, PM Modi explained the measures that are expected to propel bilateral trade to the targeted figure. "We have made several significant decisions today to elevate our bilateral trade to $25 billion by 2030. The MoU between our drug authorities will enhance access to Indian medicines in Vietnam, and the export of Indian agricultural, fisheries, and animal products to Vietnam will also become easier," said PM Modi.
Agricultural Partnership and New Imports
The Prime Minister emphasized that the agricultural collaboration between India and Vietnam would soon bring tangible benefits to both countries. "We are excited to see Indian grapes and pomegranates being imported to Vietnam, while India will soon receive Vietnamese pomelos," PM Modi revealed. These trade agreements aim to foster deeper agricultural connections and provide consumers in both countries with a diverse range of high-quality products.
Infrastructure and Connectivity
Further strengthening the economic relationship, the leaders discussed the expansion of key sectors like infrastructure development and supply chain resilience. PM Modi highlighted that the partnership would increasingly focus on critical areas such as minerals, rare earths, and energy cooperation. These new initiatives aim to bolster the economic security and supply chain resilience of both countries, ensuring long-term stability. "Connectivity and capacity building are essential pillars of our partnership. We are pleased to see air connectivity between India and Vietnam growing steadily," added PM Modi.
Strengthening Financial Cooperation
Another important aspect of the India-Vietnam partnership is the development of closer financial ties. Both leaders expressed their commitment to facilitating smoother economic transactions between the two nations. "To promote financial connectivity, today we have agreed to increase cooperation between our Central Banks," the Prime Minister confirmed. The move is expected to streamline cross-border financial transactions and further integrate the two economies.
The discussions and the signing of the MoUs demonstrate the growing economic and strategic partnership between India and Vietnam, with both nations working together to create a robust framework for future collaboration. As both countries continue to enhance their trade and economic exchanges, the outlook for bilateral relations remains positive and promising.
