Trade Cooperation Between India and Vietnam, and Between Pakistan and China

India has offered Vietnam a $300 million loan to enhance maritime security and has committed to doubling trade and investment over the next five years. This collaboration will include defense, semiconductor manufacturing, green technology, AI, cloud computing, and climate action. India sees Vietnam as a crucial pillar of its Southeast Asian policy and an important partner in its Indo-Pacific vision. The bilateral trade between the two countries grew by 27% in 2022, amounting to over $14 billion.

Following Pakistan’s acquisition of a new $7 billion bailout package from the International Monetary Fund (IMF) in July this year, Islamabad has initiated discussions with Beijing to reevaluate at least $16 billion in debt in the energy sector owed to China, specifically aiming to extend the maturity date of a $4 billion cash loan. Additionally, Pakistan is facing pressure to renegotiate costly contracts with power producers, the majority of which are Chinese companies.

Ethiopia’s decision to float its currency has facilitated access to more than $20 billion in funding from the World Bank and the International Monetary Fund. This funding is crucial for the Ethiopian government as it strives to address its debt and boost its economy. However, this move is expected to lead to increased inflation for Ethiopians who are already grappling with the impact of adverse weather, severe conflict, and widespread unemployment.