India and Vietnam have good and friendly relations since their inception. The two countries have been historically linked through deep cultural bonds, ethical beliefs and their people share similar memories of struggle for liberation from foreign rule and of national struggle for independence. Thus, there exists a close linkage between two countries. Indians in Vietnam consist of migrants from India, both historical and recent. Prior to the Vietnam War, there was a vibrant Indian community in Vietnam consisting of primarily Tamils, and specifically the Chettiars. In contemporary history, Indians began migrating to Vietnam from different regions of India in the late nineteenth century, in search for better economic prospects and/or for colonial civil service. Upon the good relation between the two countries, Indian government places Vietnam an important role and position in its Act East Policy. Thus, it creates opportunities for Indians to migrate to Vietnam. At present, Indians come to Vietnam mainly for doing business and participating in civil services. As of 2018, there were about 3500 Indians in Vietnam, mainly in Ho Chi Minh City. The Indian community is vibrant, law-abiding, well-educated and prosperous. There has been a steady increase in the number of Indian professionals working in multinational companies in Vietnam as well as Indian tourists. Indian community makes its presence felt by organizing cultural events on the occasions of “Holi”, “Diwali”, “Onam” etc. At present, Indian community play an important role in Vietnam economic development and in enhancing Vietnam–India relation as well. Upon this background, this research aims at elaborating the process of Indian community formation in Vietnam both historical and recent, and examining opportunities and challenges they have been facing, and how they have been contributing to the development of Vietnam–India bilateral relations.