The Submarine MoU: A New Frontier or a Symbolic Gesture?
On November 11, 2025, India and Vietnam signed a ground-breaking Memorandum of Agreement on Mutual Submarine Search, Rescue Support, and Cooperation at the 15th Defence Policy Dialogue held in Hanoi. This agreement marks the first collaboration between the two nations focusing on operational coordination in an advanced maritime safety domain. Yet, while the headlines trumpet this as a significant milestone, the devil lies in the details — chiefly, the question of whether the operational capability required exists or is aspirational.
This MoU accompanies a Letter of Intent on Defence Industry Cooperation aimed at expanding production and technology exchange. Both instruments aim to fortify the Comprehensive Strategic Partnership introduced in 2016. With bilateral trade reaching USD 15.76 billion in 2024–25 and India’s defence exports, including INS Kirpan — a missile corvette — gifted in 2023, the ties have indeed thickened. But will these pieces fit into a robust strategic puzzle, or are they just incremental steps that could flounder under resource constraints?
The Architecture of India-Vietnam Defence Relations
The institutional mechanisms governing the defence partnership are underpinned by the Joint Vision Statement for Defence Partnership towards 2030. Frequent high-level consultations — such as strategic dialogues, the annual Defence Policy Dialogue, and joint military exercises like VINBAX — offer steady scaffolding for cooperation. Operational coordination already extends to logistics, training, and maritime exercises.
India’s decision to provide the missile corvette INS Kirpan in 2023 underscores a willingness to equip Vietnam against regional security challenges, notably China's assertive actions in the South China Sea. Agreements signed last year included provisions for mutual logistical assistance between the armed forces, laying the groundwork for deeper interoperability. Yet, systemic gaps exist, from production delays to bureaucratic inertia, limiting further expansion in joint defence manufacturing.
The Reality Behind the MoUs
The submarine rescue collaboration must confront practical challenges. Vietnam possesses a modest submarine fleet of six Kilo-class ships purchased from Russia, while India’s submarine rescue capabilities are relatively nascent, anchored by its Deep Submergence Rescue Vessel (DSRV) inducted in 2018. While technically feasible, operationalizing the MoU will require capital inflow, sustained training, and infrastructure upgrades. Without clear budgetary commitments or timelines, this risks becoming a symbolic initiative rather than a transformative one.
Take the Letter of Intent on Defence Industry Cooperation: India's promise to assist Vietnam in expanding indigenous capacity for defence production aligns with its broader 'Make in India' programme. However, India faces export capability constraints, and Vietnam remains dependent on legacy suppliers like Russia for advanced weapon systems. Previous attempts at defence manufacturing cooperation between India and partners including Sri Lanka failed to materialize meaningful results due to capacity gaps and delays. Vietnam’s limited industrial footprint magnifies these challenges.
Trade offers a mixed picture of progress. While USD 15.76 billion in bilateral trade signals growth, it is dwarfed by Vietnam's USD 160 billion trade with China in the same year. Non-tariff barriers and poor logistical networks reflect unfulfilled potential. Tariffs on Indian pharmaceuticals — a key export sector — continue to act as a bottleneck in capturing larger market share.
Centre-State Friction, Bureaucratic Hurdles, and Regional Dynamics
The structural limitations in defence and trade cooperation are compounded by broader governance issues. India’s defence exports strategy continues to grapple with slow procurement systems and state-level hurdles. For instance, Vietnam’s proximity to China means balancing geopolitical ambitions carefully; Hanoi remains bound by ASEAN’s multilateral norms promoting consensus-driven approaches rather than unilateral blocs. This complicates quick bilateral execution.
Additionally, limited track records in operationalizing agreements, particularly in high-tech sectors such as digital transformation, suggest institutional inertia. Vietnam shows accelerating progress in tech infrastructure, evidenced by Dalat's growing role in semiconductor R&D, yet India’s engagement in this arena pales compared to South Korea or Japan — two countries that have heavily invested in Vietnam’s digital economy.
The Korean Playbook: Lessons for Execution
South Korea's engagement with Vietnam could provide a counterpoint. Hyundai Engineering pledged investments worth USD 3 billion into green energy construction projects in Northern Vietnam, streamlining project timelines and leveraging long-standing industrial partnerships. In contrast, India lacks such deep-rooted industrial collaborations, focusing instead on development programmes with smaller financial commitments — such as Quick Impact Projects (QIPs) totaling USD 46 million since 2017.
While India's commitment focuses on capacity-building in education and community development, South Korea's strategy actively integrates Vietnam into its supply chain ecosystem. This offers lessons on bridging technology transfer bottlenecks and scaling bilateral trade volumes through bold, coordinated investment strategies.
Metrics for the Path Ahead
Success in India–Vietnam relations from this juncture must be measured through operational outcomes rather than diplomatic platitudes. The submarine MoU will only matter if India and Vietnam achieve functioning collaborative protocols for search, rescue, and joint naval operations. Similarly, defence industry cooperation should produce specific milestones — transfer of technology agreements, joint productions, or procurement orders.
Bilateral trade expansion would require serious efforts to resolve non-tariff barriers, enforce lower tariffs, and promote industry-specific delegations across pharmaceutical, apparel, and electronics domains. Tracking export figures and investment volumes (currently USD 2 billion from India and USD 12.69 million from Vietnam) will clarify whether mutual economic interests are being adequately leveraged.
Natural Integration: Questions for Examination
- Prelims Question 1: Which agreement signed during the 15th Defence Policy Dialogue between India and Vietnam focuses on maritime safety?
- A. Defence Industry Cooperation Agreement
- B. Submarine Rescue Cooperation Memorandum (Correct Answer)
- C. Strategic Dialogue Charter
- D. ASEAN Joint Maritime Protocol
- Prelims Question 2: Which country is Vietnam’s largest trading partner as of 2024?
- A. India
- B. South Korea
- C. China (Correct Answer)
- D. Russia
Mains Question: Critically evaluate the structural limitations of India–Vietnam defence and trade collaboration. How far has institutional capacity impacted execution of agreements?
Practice Questions for UPSC
Prelims Practice Questions
- Statement 1: The defense partnership was formally introduced in 2020.
- Statement 2: INS Kirpan was provided by India to Vietnam to enhance its maritime capability.
- Statement 3: The 15th Defence Policy Dialogue took place in New Delhi.
Which of the above statements is/are correct?
- Statement 1: Vietnam has sufficient advanced technology for submarine manufacturing.
- Statement 2: India's submarine rescue capabilities are well-established.
- Statement 3: Bureaucratic inertia might impede the execution of agreements.
Which of the above statements is/are correct?
Frequently Asked Questions
What is the significance of the Memorandum of Agreement signed between India and Vietnam on submarine rescue cooperation?
The Memorandum of Agreement is significant as it marks the first collaboration between India and Vietnam focusing specifically on operational coordination in marine safety. This partnership aims to enhance both nations' capabilities in submarine search and rescue operations, emphasizing their commitment to strengthening defense ties amid regional security challenges.
How does India's defense exports relate to its strategic partnership with Vietnam?
India's defense exports to Vietnam, including significant assets like the missile corvette INS Kirpan, reinforce the strategic partnership established in 2016. With bilateral trade reaching USD 15.76 billion, these exports not only signify military cooperation but also underscore India's commitment to supporting Vietnam amidst rising regional tensions, particularly with China.
What are the primary challenges facing the operationalization of the submarine rescue collaboration between India and Vietnam?
The primary challenges include Vietnam's limited submarine fleet and India's nascent submarine rescue capabilities, which necessitate substantial investment in infrastructure and training. Additionally, bureaucratic inertia and a lack of clear budgetary commitments threaten to reduce the initiative to a symbolic gesture rather than a transformative solution.
What factors limit the expansion of defense manufacturing cooperation between India and Vietnam?
The expansion of defense manufacturing cooperation is limited by Vietnam's dependency on legacy suppliers like Russia, alongside India's existing constraints on export capabilities. Furthermore, previous joint ventures in defense production suffered from systemic gaps and operational delays due to inadequate industrial capacities and bureaucratic hurdles.
How do geopolitical dynamics affect the defense cooperation between India and Vietnam?
Geopolitical dynamics, particularly Vietnam's proximity to China, complicate defense cooperation as Hanoi must navigate ASEAN’s consensus-driven approach. This leads to cautious engagement with India, impeding swift bilateral execution of defense initiatives amidst broader regional security considerations.
Source: LearnPro Editorial | Economy | Published: 11 November 2025 | Last updated: 3 March 2026
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