India, Vietnam discuss $629 mn BrahMos deal, deepen strategic ties

India, Vietnam deepen strategic ties, discuss $629 million BrahMos deal and set $25 billion trade target amid Indo-Pacific security and economic challenges

India and Vietnam on Wednesday set a bilateral annual trade target of $25 billion and agreed to deepen cooperation in an array of sectors, especially in critical minerals, oil and gas exploration, and defence in the face of global upheavals and regional challenges, particularly in the Indo-Pacific.

 

The two sides also exchanged notes on Vietnam’s interest in purchasing the BrahMos missile, a possible $629 million deal, which will include training and logistical support. The two sides announced 18 outcomes, including an agreement between their drug authorities that will increase access to Indian medicines in Vietnam.

 

The Indian delegation thanked the Vietnamese side for inviting India to take part in its nuclear power sector. During their discussions at Hyderabad House in New Delhi, Prime Minister Narendra Modi and visiting Vietnamese President To Lam agreed to elevate bilateral ties to an enhanced comprehensive strategic partnership. In his statement at the joint press briefing, Modi described Vietnam as a key pillar of India's “Act East Policy” and “Vision Ocean”. He said exports of Indian agricultural, fisheries, and animal products to Vietnam will become easier.

 

 

Vietnam granted market access for Indian grapes, while India approved the same to Vietnamese durians. They also agreed to expedite market access for Indian pomegranates and Vietnamese pomelos, by quickly resolving technical issues through expedited bilateral consultations. The two sides agreed to set up a regular defence and foreign ministry dialogue. A delegation of the Society of Indian Defence Manufacturers had visited Vietnam in March 2026 to look for defence procurement by Hanoi.

 

During their discussions, Modi offered Vietnam help with maintenance, repair and operations (MRO) support for Sukhoi 30 fighter jets and Kilo-class submarines. India in 2023 gave $500 million worth of lines of credit to Vietnam for purchase of high-speed patrol boats and submarine batteries, and for upgrading Vietnamese naval ships.

 

On BrahMos deal, Indian officials said Vietnam is an important partner in the Indo-Pacific on the premise that a strong Vietnam will serve the cause of peace and stability. The two sides discussed many defence platforms, including BrahMos.

 

“Watch this space,” said Secretary (East) in the Ministry of External Affairs P Kumaran at a press briefing when asked about the BrahMos deal. China's growing military muscle-flexing in the South China Sea figured in the delegation-level talks between the two sides.

 

Elected President earlier this month, Lam began his first state visit to India on Tuesday, leading a high-level delegation for a three-day trip. 

 

Apart from pharmaceuticals, the agreements also covered digital payments, education, banking, and culture. The two sides also agreed to update the India-Asean trade agreement by the end of this year. “This will provide a new impetus to trade and investment between India and all Asean countries,” Modi said.

 

He said India is grateful to Vietnam for its strong condemnation of the Pahalgam terrorist attack and standing with India in its fight against terrorism. The country will mark the first anniversary of Operation Sindoor on Thursday.

 

"In this era of global turmoil and economic challenges, thanks to their talent, good governance, and economic reforms, India and Vietnam are emerging as the world's fastest-growing economies,” the PM said. In his remarks, Lam said both sides agreed to deepen political trust and elevate security cooperation. The two interacted with business leaders at a lunch. Lam will visit Mumbai on Thursday.

 

The two leaders agreed that the ongoing review of the Asean India Trade in Goods Agreement (AITIGA) should be concluded at the earliest. They said the resulting agreement should be mutually beneficial, trade facilitative and relevant to current global trading practices. In the field of oil and gas, the two sides will further enhance exploration and production activities, including development of new wells, where Indian companies are interested in participating, in accordance with Vietnamese law and international law.