India offers $300 million loan to build up Vietnam's maritime security, saying it is a key partner

NEW DELHI -- India on Thursday offered a $300 million loan to build up Vietnam’s maritime security, as the two sides said they want to double their trade and investment within five years.

Prime Minister Narendra Modi told visiting Vietnamese Prime Minister Pham Minh Chinh that India considers Vietnam a key pillar of its policy toward Southeast Asian nations and an important partner in its Indo-Pacific vision.

After their talks, Chinh told reporters the world faces fierce security challenges but there are opportunities for cooperation.

"The Asia Indo-Pacific region is a locomotive for growth, but it is also where major politics is taking place fiercely," he said. "We need an approach and methodology that is global and upholding multilateralism."

The prime ministers said both sides wanted to further their cooperation in defense and other areas such as semiconductor and green technology, artificial intelligence, cloud computing and climate action.

Modi and Chinh virtually inaugurated the “Army Software Park” in Vietnam, an educational facility set up with India's help to train Vietnamese soldiers in digital skills.

Bilateral trade between the two countries in 2022 grew 27% and reached $14.14 billion. Indian exports to Vietnam touched $6.7 billion, while Indian imports from Vietnam amounted to $7.44 billion in the same period, India's Ministry of External Affairs said.

Indian exports to Vietnam include iron and steel, cotton, cereals, meat and fishery products, electrical machinery and equipment, automobile parts, cement, chemicals and pharmaceuticals.

India’s import basket from Vietnam mainly includes electrical and electronic equipment, inorganic chemicals, machinery and mechanical appliances, copper and rubber, coffee and tea, spices, iron and steel.

India’s investments in Vietnam are estimated at around $1.9 billion in energy, mineral exploration, agriculture, information technology and other areas, according to the country's External Affairs Ministry.

Vietnam has invested over $28.55 million in India, mainly in pharmaceuticals, information technology, chemicals, and building materials.