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INDIA AND VIETNAM SIGN MUTUAL LOGISTICS AGREEMENT..

UPSC CURRENT AFFAIRS | INDIA AND VIETNAM SIGN MUTUAL LOGISTICS AGREEMENT | 10TH JUNE | THE HINDU

/ June, 2022, UPSC Daily Current Affairs

SYLLABUS SECTION: GS II ( BILATERAL RELATIONS)

WHY IN THE NEWS?

Recently, India and Vietnam sign Mutual Logistics Agreement Joint Vision Statement on India-Vietnam Defence Partnership towards 2030 and a Memorandum of Understanding (MoU) on mutual logistics support has been also signed.

MAJOR AGREEMENTS:

  • The Memorandum of Understanding (MoU) on mutual logistics support.
  • It is the first major agreement that Vietnam has signed with any country.
  • The logistics support pact will allow the militaries of the two sides to use each other’s bases for the repair and replenishment of supplies.
  • A 500-million-dollar deal has been finalised between both the countries under which the Defence Line of Credit(LoC) will be extended to Vietnam.
  • India’s Defence Minister visited Tran Quoc Pagoda, a revered Buddhist temple which reaffirmed age-old civilizational and people-to-people linkages.

SIGNIFICANCE:

  • It indicates the shared desire to constrain China that it must follow the rules and regulations of international law | India and Vietnam sign Mutual Logistics Agreement
    • In the backdrop of the US-China contest unfolding in the Indo-Pacific, Vietnam is of special significance to both India and the US
    • Close defence and security cooperation between India and Vietnam is an important factor for stability in the Indo-Pacific region.
    • Joint statements provide for the expansion of defence and military ties in diverse areas.
    • The implementation of the projects under the LoC will add substantially to Vietnam’s defence capabilities and further Prime Minister Narendra Modi’s vision of ‘Make in India, Make for the World’.

     

    INDIA AND VIETNAM RELATIONS

     

    1.      Cultural links:

    ·         The link between India and Vietnam is very old and dated back to the 2nd century.

    ·         Oc Eo culture of the Fu Nan Civilization and Champa Civilization in South and Central Vietnam played a significant role in linking Indian cultural elements and practices with Vietnam.

    ·         The Swami Vivekananda Indian Cultural Centre was established in Hanoi in September 2016. It was formally inaugurated on 20 April 2017.

    2.      Economic ties:

     

    ·         India granted “Most Favoured Nation” status to Vietnam in 1975 and both nations signed a bilateral trade agreement in 1978 and the Bilateral Investment Promotion and Protection Agreement (BIPPA) on 8 March 1997.

    ·         In 1992, both the countries India and Vietnam established extensive economic ties, including oil exploration, agriculture and manufacturing.

    ·         In trade India is Vietnam’s 10th largest trading partner, while Vietnam is India’s 15th largest trading partner and 4th largest in ASEAN after Singapore, Indonesia and Malaysia.

    ·          India’s trade deficit with Vietnam declined from $2.22 billion in 2019–20 to $1.12 billion in 2020–21.

    ·         India and Vietnam have also expanded cooperation in information technology, education and collaboration of the respective national space programme.

     

    3.      Defence ties:

    ·         The relations between the two countries, especially defence ties, benefited extensively from India’s Look East policy.

    ·         Bilateral military cooperation includes the sale of military equipment, sharing of intelligence, joint naval exercises and training in counterinsurgency and jungle warfare.

    ·         India also regularly deploys its warships for goodwill visits to the Vietnamese seas.

     

    4.      Strategic partnership:

    ·         Bilateral relations between both the countries elated to a “Strategic Partnership” during Vietnamese Prime Minister Nguyen Tan Dung’s visit to India in July 2007, and upgraded to a “Comprehensive Strategic Partnership” during Indian Prime Minister Narendra Modi’s visit to Vietnam in September 2016.

    ·         The year 2022 has marked the fifty years of diplomatic relations between the two countries.

     

    Read more: UPSC CURRENT AFFAIRS

    Source: The Hindu