New Delhi, Nov. 2 -- India and Vietnam have long regarded each other as "all-weather friends," or "most trusted partner and ally," especially in their defense ties. Leaders of both countries have increasingly sought to extend this momentum to economic cooperation. Bilateral trade reached a record US$16.46 billion in 2025, yet Vietnam ranked only 19th among India's trading partners in FY2025-26.

This gap suggests there is still room for economic ties to catch up with those of defense. However, unlike defense relations wherein political commitment could deepen ties relatively directly, economic integration depends on existing industrial structures, firms' commercial incentives and conflicting domestic agendas. Understanding this interplay ...