Vietnam Expands Trade Ties With India While Facing U.S. Scrutiny

The Government of Vietnam is pursuing a dual-track economic strategy, strengthening ties with India while managing trade tensions with the United States. In May 2026, Vietnam and India raised their bilateral trade target to $30 billion by 2030, surpassing a previous $25 billion goal. The two nations signed Memorandums of Understanding covering artificial intelligence, defense manufacturing, and textiles, while the Reserve Bank of India and State Bank of Vietnam established digital payment linkages via QR codes.

As part of this expansion, President To Lam visited the National Stock Exchange in Mumbai. Simultaneously, a delegation led by Nguyen Loc Ha met with Maharashtra officials to discuss sustainable infrastructure and urban connectivity. Trade between the two countries exceeded $16 billion in the 2025-26 fiscal year.

Parallel to these gains, Vietnam is engaged in trade consultations with the U.S. federal government regarding industrial capacity and forced labor. U.S. Trade Representative Jamieson Greer designated Vietnam as a Priority Foreign Country concerning intellectual property, a move that may trigger a Section 301 investigation. The U.S. is specifically examining Vietnam's $123.5 billion trade surplus. In response, Hanoi has implemented labor reforms aligned with the International Labour Organization to protect its Comprehensive Strategic Partnership with the U.S.