"Looking back on the past 35 years since Vietnam and India established diplomatic ties, we are proud of the traditional friendship and multifaceted cooperation between the two countries, which have developed constantly for the interests of both people and for peace, stability and cooperation and development in the region and the world," Vietnamese Ambassador Vu Quang Diem said in an interview granted to the Vietnam News Agency.

The relationship is the inheritance and development of the friendship, which has been experienced a thousand of years through trading and cultural exchanges, fostered by generations of Vietnamese and Indian leaders, the diplomat said.

Both Vietnam and India have made great achievements in their Renewal process which have opened many opportunities for their cooperation.

The traditional friendship and strategically multifaceted cooperation between Vietnam and India have not only played an important role in ensuring sustainable development of the two countries, but have also been important factors for peace, stability, development and integration in the Asia-Pacific region and the world, said Mr Diem.

He stressed that Vietnam highly values India’s international role and position and fully supports its bid to become a potential permanent member of the United Nations Security Council.

However, the ambassador went on to say that in the ever-changing global community, Vietnam and India should strengthen cooperation for the sake of peace, stability, cooperation and development in the region and the world.

Over recent years, both sides have made great efforts to boost economic relations with two-way trade value reaching nearly US$850 million in 2006.

However, the ambassador acknowledged that the economic, commercial, sci-tech and educational ties between Vietnam and India remain modest. He cited few trade and investment promotion activities from both nations, particularly Vietnam, inappropriate cooperation policies and inconvenient conditions for economic exchanges, such as the lack of direct flight and the existence of tax and non-tax barriers, as major reasons behind this situation.

"It's time to strongly reform relations, particularly economic, commercial, scientific and educational relations, between Vietnam and India, and define new targets and measures to make bilateral ties more practical and efficient and to better tap the great potential of the two countries," the ambassador stressed.

Mentioning India's Eastward Policy, Mr Diem said, the policy has produced encouraging results for India to improve and enhance its relations with the Association of Southeast Asian Nations (ASEAN) in particular, and with Eastern countries in general.

He added that Vietnam is proud of contributing to the relations between India and ASEAN and is willing to continue acting as a bridge for India to enhance cooperation with ASEAN and other forums in the Asia and Pacific region.

India has become a full dialogue partner of ASEAN and actively participated in many other regional forums such as ASEAN Regional Forum (ARF), ASEAN-India Summit and East Asia Summit.

India and ASEAN signed an agreement on comprehensive economic cooperation in 2003.