India, Vietnam sign Civil Nuclear deal, three other agreements

•  India and Vietnam signed a civil nuclear cooperation agreement which will further strengthen the comprehensive strategic partnership between the two countries.
• The two countries also signed three other agreements — to enhance aviation links, to jointly work in the area of energy efficiency and promotion of parliamentary cooperation.
• Vietnam is the 14th country with which India signed the civil nuclear deal.
• The two countries had earlier in 1986 signed a pact in the civil nuclear field which was limited to training. However, the new agreement is broad based and encompasses research on nuclear reactors.
• The cooperation in research on nuclear reactors will get activated once India gets membership of the Nuclear Suppliers Group.
• An MoU on 'Promotion of traffic between Vietnam and India and sharing of best practices in airline operation, ground handling procedure and management' was also signed between Air India and Vietjet Aviation Joint Stock Company.

Analysis(Indo-Vietnam relations):

• India’s foreign policy towards East Asia has witnessed a marked shift over the last two years, with the government intent on transforming India’s relations with this part of the world under its “Act East” policy. Vietnam is one of the East Asia Countries which has received a special place in the list of India’s foreign policy priorities, given its profound significance in India’s strategic and economic interests.
• Defence cooperation has been an important cornerstone of the strategic partnership between the two countries for the last many years; India has provided a credit line of US $ 100 million for defence procurement.
• The two countries signed a vision statement for next five years in 2015 and a MoU on cooperation between the coast guards of the two countries. India also announced extending of a new defence credit line of $500 million and elevated the strategic partnership to the comprehensive strategic partnership, signifying India’s deep commitment to help Vietnam to build its defence capabilities.
• The deepening defence engagement between India and Vietnam indeed is the reflection of India’s deeply interested in actively participating in shaping the political security order in Asia-Pacific. In so doing, the Indian strategic community believes that a strong defence relationship with Vietnam can prove a huge strategic asset for India, so far as its interests in the South China Sea are concerned. As About 50 per cent of its trade transits through the South China Sea, New Delhi needs foster security ties Hanoi to ensure that there is absolute freedom of navigation in this part of the world.
• Trade between India and Vietnam has reached $8.03 billion in 2014.India has also offered to discuss a line of credit of US$300 million in the textile sector.
• Energy is another area which is a crucial aspect of the relationship between the two countries. As India needs to find viable sources of energy to sustain and intensify its economic growth, it attaches high importance to Vietnam in its energy policy. Thus, while India’s ONGC Videsh has been working with Vietnam in oil exploration activates, the award of a US$ 1.8 billion thermal power project to India’s Tata Power in Vietnam’s Soc Trang Province is seen to make an epoch-making shift in the energy relations between the two countries. Also, intense engagement with Vietnam would help India to strength its presence in the ASEAN and other similar regional forums.

By: Vishal