Significance of India's Defense Association with Vietnam

India could emerge as a potential exporter of defence equipment as Vietnam seeks to diversify its arms purchases.

Photo (https://unsplash.com/photos/soYzQJvctKI)

Indian Defense Minister Rajnath Singh recently paid a three-day (8-10 June 2022) visit to Hanoi to strengthen defense and security ties with Vietnam. The two sides discussed regional security issues and signed agreements to enhance their defense commitments. These ties are of additional importance in the context of India's two-year standoff with China over the Ladakh border and Beijing's aggressive moves in the South China Sea, which directly affect Vietnamese security. Hanoi is looking forward to involving New Delhi to balance the growing Chinese war in the region and offset the ‘push and pull’ dynamics with Russia and the United States (US).

India has also activated a satellite imaging and tracking station in Hanoi, which has made it possible to track the activities of the Chinese navy in the region.

Over the past decade, these bilateral relations have become even stronger. As expected, maritime security has emerged as an important area of ​​cooperation. Vietnam has regularly participated in the Milan Naval Exercise organized by the Indian Navy. India has also activated a satellite imaging and tracking station in Hanoi, which has made it possible to track the activities of the Chinese navy in the region. In addition, there were regular military exchanges between the two sides. The Kovid-19 epidemic also did not stop it. In March 2020, Vietnam was part of a select “Quad Plus” group of seven countries to discuss the response to the Indo-Pacific epidemic.

During Minister Singh's recent visit, India and Vietnam signed two important agreements:

• The first agreement, 'Joint Vision Statement on Indo-Vietnam Defense Partnership Towards 2030', outlines a long-term vision for the relationship. According to officials, although the content of the agreement is not available in the public domain, its goal is to "expand the scope and scale of existing defense cooperation."
• The second agreement, a reconciliation agreement, focuses on mutual logistical support to enable both countries to repair each other's use of military bases and replenish supplies. According to the official statement, the agreement is "the first major agreement Vietnam has ever signed with any country." The system will mainly benefit the Indian Navy as it expands its profile in the Indo-Pacific.

In addition, the two countries agreed to extend the US $ 500 million credit line (LOC) to Hanoi. The Line of Control (LoC) for the purchase of Indian arms from Vietnam was initially announced during Prime Minister Narendra Modi's visit to Vietnam in September 2016, when the relationship was upgraded to "Comprehensive Strategic Partnership". However, the use of the framework for the LoC has been delayed due to negotiations by both sides in January 2021. The two countries could not decide which Indian defense equipment would be procured as part of the LoC.

Vietnam used the former US $ 100 million Indian Defense LoC (offered nearly a decade ago in 2013) to purchase 12 offshore high-speed patrol boats for its navy.

Vietnam used the former US $ 100 million Indian Defense LoC (offered nearly a decade ago in 2013) to purchase 12 offshore high-speed patrol boats for its navy. The boats were handed over by India during Mantri Singh's visit. The use of delayed LOC is the only inconsistent tip in an otherwise strong bilateral defense cooperation.

As part of the US $ 500 million LoC, India has offered Vietnam BrahMos cruise missiles, air missile air defense systems, Varun anti-submarine torpedoes and coastal radar.

The two countries have been discussing the sky system since 2017, as Vietnam seeks to replace its old Soviet-era S-125 / S-75 medium-range surface-to-air missile system. According to the report, the Vietnamese side is considering local production of the Sky-NG variant (with a range of 70-80 km.) And, therefore, requested the transfer of technology and joint production of the system. However, as the missile system is still being tested, any realization of this agreement is far from over.

India and Russia are more likely to buy BrahMos missiles. After receiving the first export order for the missile from the Philippines earlier this year, India is keen to maintain momentum by aggressively bringing the missile system to Hanoi. This export push serves the dual purpose of boosting India's defense industry and arming major Southeast Asian nations that keep China on par. Notably, L&T Shipyard had built offshore boats distributed by India under US $ 100 million LoC. Opportunities like these create the possibility for the private sector to be a part of India's growing defense exports.

L&T Shipyard built offshore boats which were distributed by India under US $ 100 million LoC.

Despite the pro-China tendencies of the current political leadership, the main driver of Vietnam’s military buildup is security enmity with China. The aggression by Beijing to suppress its territorial claims in the South China Sea dispute has become a significant irritation for Hanoi. Vietnam is the most vocal of the Southeast Asian parties in this dispute. The conflict between the two has escalated since May 2014, when Vietnamese naval vessels and fishing boats clashed with Chinese ships on the disputed Paracel Islands, where China had set up an oil rig. In one incident, a Vietnamese fishing boat sank near a rig after hitting a Chinese ship.

Despite the pro-China tendencies of the current political leadership, the main driver of Vietnam’s military buildup is security enmity with China. The aggression by Beijing to suppress its territorial claims in the South China Sea dispute has become a significant irritation for Hanoi. Vietnam is the most vocal of the Southeast Asian parties in this dispute. The conflict between the two has escalated since May 2014, when Vietnamese naval vessels and fishing boats clashed with Chinese ships on the disputed Paracel Islands, where China had set up an oil rig. In one incident, a Vietnamese fishing boat sank near a rig after hitting a Chinese ship.

Vietnam has traditionally relied on Russia for its weapons. However, given its renewal due to U.S. sanctions against the U.S. and Russian defence industry, Hanoi has sought to diversify its recent arms purchases.

Since the conflict in the South China Sea, Vietnam has increased defense spending by an average of US $ 4.8 billion between 2014 and 2018. But, compared to the threat posed by China and its military needs, this cost is insufficient. Therefore, Hanoi is looking for a more affordable defense supplier with this moderate defense cost.

India could be a potential source. The Indian Army has the advantage of operating the same platform as Vietnam. Hanoi has benefited from this by helping in training and capacity building in kilo-range submarine operations and Sukhoi-30 fighter jet training.

The Chinese hostility in the region will ensure that India and Vietnam continue on the path of cooperation. Moreover, the positive attitude of both countries towards security relations with the United States is another point of contention. However, in order to maximize the benefits of their cooperation and contribute to regional stability, New Delhi and Hanoi will have to make tangible progress. Perhaps, the rapid use of the Line of Control will unlock price proposals for both sides. In addition, the expansion of defense cooperation will have an impact on strengthening cooperation in other areas, such as high-tech production and agricultural production.