Vietnamese PM Pham Minh Chinh (L) and Indian PM Narendra Modi after their bilateral talks in New Delhi, on August 1, 2024. (Photo: X/@narendramodi)
New Delhi: During the official three-day state visit of the Vietnamese prime minister, Pham Minh Chinh, to India, New Delhi announced two loans totalling $300 million to Hanoi. The loan is specifically aimed at strengthening Vietnam’s maritime security.
The agreement for this line of credit (loan) was signed on Thursday between the Vietnamese finance ministry and India’s Export-Import Bank in the presence of the visiting prime minister, Chinh, and the Indian prime minister, Narendra Modi, in New Delhi on Thursday.
Vietnam has been a close partner for India in the Asean (Association of Southeast Asian Nations) region, and this credit line further solidifies their bilateral relationship. The funds will support Vietnam in undertaking and completing critical maritime projects.
This development is seen as a key moment in the comprehensive strategic partnership between India and Vietnam, which was elevated to the highest level in 2016.
Earlier today, held very productive talks with PM Phạm Minh Chinh of Vietnam. India cherishes the strong friendship with Vietnam. Over the years, we have deepened cooperation in trade, energy, technology, security, connectivity and more. Cultural and people-to-people linkages… pic.twitter.com/w2v8lYYnAO
— Narendra Modi (@narendramodi) August 1, 2024
Since this loan is specifically earmarked for Vietnam’s maritime security projects, it is expected to enhance the country’s capabilities to safeguard its territorial waters, exclusive economic zone, and vital sea lanes in the Indo-Pacific region, especially in the face of China’s maritime threats. It may be mentioned that China has maritime disputes with almost every country in the South China Sea region, including Vietnam.
This loan will also help Hanoi to upgrade its ability to monitor and respond to other challenges, such as illegal fishing and piracy.
India and Vietnam collaborate extensively in defence matters. This includes joint exercises, training programs, and procurement of defence equipment. During the 14th India-Vietnam Defence Policy Dialogue, held in New Delhi on Thursday, both nations proposed cooperation in emerging areas, like cybersecurity, information security, military medicine, and submarine search and rescue.
The defence secretary, Giridhar Aramane, represented India in the dialogue, while Vietnam was represented by its deputy minister of national defence, Senior Lieutenant General Hoang Xuan Chien.
The 14th India-Vietnam Defence Policy Dialogue took place in New Delhi on 1st Aug 2024.
— Defence Production India (@DefProdnIndia) August 2, 2024
It was co-chaired by Defence Secretary Shri Giridhar Aramane and Deputy Minister of National Defence of Vietnam Senior Lieutenant General Hoang Xuan Chien.
Details ➡️ https://t.co/aVSZmLtWK8 pic.twitter.com/rJZKkJF4yw
New Delhi believes that a stronger Vietnamese maritime presence will be a key deterrent against potential aggressors in the South China Sea. It also believes that maintaining a balance of power in the region will ensure that no single country dominates the regional maritime affairs.
Earlier, on Thursday, after the bilateral talks in the national capital, Modi and Chinh lauded the effective implementation of the joint vision statement on India-Vietnam Defence Partnership towards 2030 and strengthening of defence cooperation between the two countries. It may be mentioned that, in recent years, cooperation between the two countries included training and capacity building in defence and other industrial sectors, joint military exercises, formulating common defence policy on Indo-Pacific, etc.
Later, the two leaders also virtually inaugurated the Army Software Park in the Telecommunications University in Nha Trang, Vietnam, which was built under an Indian grant.
