India has strengthened its strategic partnership with Vietnam by extending a US$300 million line of credit for the procurement of two types of patrol boats, a move aimed at enhancing Vietnam’s maritime security. The announcement came during a joint media statement by Prime Minister Narendra Modi and Vietnamese Prime Minister Pham Minh Chinh, amidst increasing concerns over China’s assertive actions in the Indo-Pacific.
In the statement, Modi stressed India’s commitment to development over expansionism, subtly addressing China’s growing influence in the region. The credit line, valued at approximately Rs 2,400 crore, underscores India’s support for Vietnam’s defence capabilities, contributing to regional stability.
Briefing media persons at the end of talks, Jaideep Mazumdar, Secretary (East) at India’s Ministry of External Affairs, highlighted the significance of this partnership, stating, “As I have said, defence cooperation is a very important pillar, and both leaders believe that industry cooperation is a priority. In fact, defence industry cooperation has emerged as a very important area.” This collaboration involves technology transfer and defence production, reflecting a mutual interest in building a strong defence partnership.
In addition to the credit line, India and Vietnam signed an implementation arrangement for defence industry cooperation, creating a framework for ongoing collaboration. This agreement addresses Vietnam’s specific defence needs and aligns with India’s broader goals of fostering self-reliance in defence manufacturing and enhancing its Act East Policy.
The leaders also discussed expanding economic ties, with current bilateral trade around US$15 billion. Both nations expressed a desire to elevate this figure, recognizing Vietnam’s strategic role in India’s Indo-Pacific vision. The joint statement reiterated a commitment to a free, open, and rules-based Indo-Pacific, emphasizing the importance of Vietnam in the region’s security architecture.
The talks covered various aspects of security cooperation, including human resource development, peacekeeping operations, hydrography, cybersecurity, and maritime safety. The leaders agreed to expedite the implementation of the Implementing Arrangement on Hydrography and form a Joint Committee to oversee these efforts, enhancing collaboration across multiple domains.
The US$300 million Line of Credit also includes provisions for the rapid implementation of defence procurement projects. This initiative is crucial for bolstering Vietnam’s maritime security, enabling it to safeguard its interests in the contentious waters of the South China Sea.
In conclusion, the extension of this line of credit signifies a deepening of India-Vietnam relations, with both countries committed to enhancing their defence and economic ties. This partnership is poised to contribute significantly to regional stability and security, reinforcing a shared vision for a peaceful and prosperous Indo-Pacific.