Vietnam has shown remarkable skill in its foreign relations, hosting major world leaders like U.S. President Joe Biden, Chinese President Xi Jinping, and most recently, Russian President Vladimir Putin in a span of nine months. This achievement is noteworthy amid increasing geopolitical tension and rivalry among global powers.
In contrast, India’s foreign policy seems strained, with tense relations with China, Russia, and the United States. The India-China relationship, especially, has hit a new normal after border clashes in 2020, halting efforts to stabilize ties. Modi’s recent interactions with Taiwan’s President and U.S. lawmakers suggest no immediate improvement in Sino-Indian relations.
Regarding India’s ties with Russia, while they remain cordial, interactions are on a managed decline, evident from the absence of high-level meetings since Russia’s actions in Ukraine. On the other hand, India-U.S. relations continue to strengthen, with a recent visit by U.S. National Security Advisor reinforcing bilateral cooperation.
The comparison between Vietnam and India extends beyond geopolitics to the economic realm. Vietnam emerges as a significant player in global supply chains, benefiting more than India in de-risking strategies from China. Structural challenges in the Indian economy, like low labor productivity and protectionist policies, hinder its economic growth compared to Vietnam.
The Real “China Plus One” Beneficiary
Vietnam outshines India not only geopolitically but also geoeconomically, drawing more foreign investment and having higher exports. India’s efforts to attract investment through initiatives like “Make in India” have not matched Vietnam’s success. Structural issues like labor market productivity and protectionist measures hold back India’s economic potential.
While India’s democracy sets it apart from one-party states like Vietnam and China, translating potential into practice remains a challenge. India’s past instances of heralded growth have not materialized fully, cautioning against premature optimism about its global rise. Vietnam’s recent achievements in both geopolitics and geoeconomics underscore India’s untapped potential.