By Zarak Khan | 2026-05-21

India and Vietnam are expanding defense and economic cooperation amid rising regional concerns over China's increasingly aggressive posture in the South China Sea and wider Indo-Pacific.

During Vietnamese President To Lam's May 5–7 visit to India, the two countries' officials signed several agreements focused largely on expanding defense, trade and technology cooperation.

Elevating their ties to an "Enhanced Comprehensive Strategic Partnership," New Delhi and Hanoi set a target of raising annual Indian-Vietnamese trade to $25 billion by 2030 and pledged to boost trade, investment and technological collaboration, according to a joint statement.

Trade between India and Vietnam exceeded $16 billion in the Indian fiscal year ending in March.

The two sides agreed to cooperate more in critical and emerging technologies, including digital public infrastructure, sixth-generation mobile technology, artificial intelligence, space and nuclear technology, marine sciences, biotechnology, pharmaceuticals, advanced materials and critical minerals, the statement said.

Mulling a missile purchase

At the center of the partnership is Hanoi's expected acquisition of the BrahMos supersonic cruise missile.

If finalized, the BrahMos sale would make Vietnam another Asian buyer of the missile system after the Philippines and Indonesia. The deal is estimated at about $700 million and would cover both army and navy variants, the Hindustan Times reported on May 16.

Buying the missile would be perceived as a direct Vietnamese challenge to China's assertiveness in the South China Sea.

Indian Defense Minister Rajnath Singh visited Hanoi on May 19 for talks with Vietnamese Defense Minister Gen. Phan Van Giang focusing on maritime security, defense industry cooperation, military training and regional stability, according to India's Defense Ministry.

The two sides additionally discussed greater cooperation in cyber security, joint exercises and defense technology, while India reaffirmed support for Vietnam's military modernization.

Boats, planes, subs

Beyond the missile deal, India has offered Vietnam three or four offshore patrol vessels, 14 fast patrol boats, and maintenance and overhaul support for Su-30 fighter aircraft and Kilo-class submarines, the report added. It also is offering submarine batteries under a $500 million line of credit.

"This is not a missile transaction. It is a comprehensive defense relationship being assembled around a combat-proven centerpiece," the newspaper said.

India has assigned Vietnam an international liaison officer at the Information Fusion Center -- Indian Ocean Region in Gurugram to augment cooperation on maritime domain awareness.

In another move likely to draw scrutiny from Beijing, Vietnam has joined India's Indo-Pacific Oceans Initiative, reinforcing strategic cooperation in maritime security and regional connectivity across the Indo-Pacific.

Regional balancing

Modi and Lam called for disputes in the South China Sea to be resolved peacefully in accordance with international law, particularly the 1982 United Nations Convention on the Law of the Sea.

The two leaders urged the full implementation of the Declaration on the Conduct of Parties in the South China Sea and the early conclusion of a "substantive and effective Code of Conduct ... that does not prejudice the legitimate rights and interests of all nations."

"The leaders underscored the importance of non-militarization and self-restraint in the conduct of all activities by claimants and all other states, and avoidance of actions that could further complicate the situation or escalate disputes affecting peace and stability," the joint statement said.

China claims more than 80% of the South China Sea as its territory, despite a 2016 international tribunal ruling rejecting its case. Vietnam, the Philippines and Brunei have overlapping claims in the waters.

Among the major powers growing closer to Hanoi, India has a certain advantage, according to Do Khuong Manh Linh, a researcher at the Institute of Politics and International Relations at the Ho Chi Minh National Academy of Politics in Hanoi.

Free of territorial disputes

"Unlike China, India brings no territorial disputes, no debt-financed infrastructure leverage, and no ideological expectations," he wrote in a May 15 analysis for the Observer Research Foundation, a New Delhi-based think-tank.

The expanding India-Vietnam partnership may not immediately shift the regional military balance, but it reflects a broader geopolitical realignment as countries in the Indo-Pacific seek alternatives to China, say analysts.

"India is gradually shifting from its position as a power center in South Asia to one of [the] increasingly prominent security actors in Southeast Asia and the South China Sea," The Diplomat said in an analysis.

At the same time, Vietnam has emerged as a key manufacturing alternative to China, particularly in electronics, garments and other consumer goods.