India has pledged a US$500 million credit line to help boost its military cooperation with Vietnam.

Indian Prime Minister Narendra Modi joined talks with his Vietnamese counterpart Nguyen Xuan Phuc in Hanoi on Saturday as part of his official visit to the Southeast Asian country scheduled for September 2-3.

The Indian head of government announced a line of credit worth $500 million which is aimed at creating favorable conditions for military ties between the two nations.

Several significant agreements in various fields, especially security and defense, were also inked by the two parties, including a deal on non-military information exchange between the two navies and an MOU on the exploration and use of outer space for peaceful purposes.

A contract on building high-speed patrol boats was signed by India’s M/s Larsen & Toubro and the ietnam Border Guard utilizing a $100 million line of credit.

Vietnam’s Ministry of National Defense and the Indian foreign ministry will also collaborate on peacekeeping efforts within the United Nations.  

Vietnam is considered the central pillar in the relationship between India and ASEAN, according to PM Modi.

ASEAN is short for the Association of Southeast Asian Nations, which is a political and economic organization whose members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

India will also offer a $5 million support package to help Vietnam build a software park in the south-central city of Nha Trang, the visiting leader added.

As two essential nations in their respective region, the two parties agreed on leveraging all opportunities for economic collaboration and joining hands in dealing with any emerging challenge.

Indian Prime Minister Narendra Modi and Vietnamese Prime Minister Nguyen Xuan Phuc feed the fish at the residence of late President Ho Chi Minh in Hanoi on September 3, 2016. Photo: Tuoi Tre  

According to PM Phuc, the two countries decided to elevate their strategic partnership to a comprehensive strategic partnership, reflecting extensive India-Vietnam ties for the interests of the two peoples and the preservation of regional peace, stability, and development.

The Vietnamese premier highlighted India’s important role in the region, reiterating Hanoi’s consistent support for New Delhi’s Act East Policy.

Regarding the East Vietnam Sea situation, the two nations are committed to preserving peace, stability, security, and freedom of navigation and aviation in the vital waterway and in the Asia-Pacific region.

They hoped that all relevant parties would resolve their disputes using amicable measures as per international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

Prior to their conversation, the two leaders visited the residence of late Vietnamese President Ho Chi Minh.

PM Modi congratulated the Vietnamese people on National Day (September 2), stating India and Vietnam began their relationship 2,000 years ago, when Buddhism was first brought to the Southeast Asian country.

Vietnam has a special place in his heart and other people in his generation, the Indian premier added.

On Saturday afternoon, PM Modi met with Vietnamese State President Tran Dai Quang, Chairwoman of the lawmaking National Assembly Nguyen Thi Kim Ngan, and Party Chief Nguyen Phu Trong.

The Indian prime minister and his delegation of high-ranking officials left Hanoi in the evening, wrapping up his trip to Vietnam.

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