India shares close political and strategic ties with the Southeast Asian subregion of Cambodia, Laos, Myanmar and Vietnam (or the CLMV countries). However, their economic ties remain weak, owing to various factors including lack of physical connectivity, as well as the absence of synergy between India’s Lines of Credit to CLMV and the country’s economic outreach. This paper analyses India’s investments and development cooperation initiatives in the subregion. Using the case of Vietnam, the paper outlines the current status of India-CLMV economic relations, highlights the weaknesses, and points to the way forward. It recommends the drafting of a white paper on India’s economic diplomacy to clearly spell out the country’s long-term strategy and goals in the subregion. The paper also calls for an integrated approach towards the CLMV subregion in terms of trade, investment, and development cooperation.