HANOI, Sept 3:

India today extended a USD500 million line of credit toVietnam to deepen their defencecooperation and signed 12 agree-ments including a deal to con-struct offshore patrol boats, amidChina's muscle flexing in the dis-

puted South China Sea and"emerging regional challenges".

Prime Minister Narendra Modi,who held wide-ranging talks withhis Vietnamese counterpart NguyenXuan Phuc here, said the two coun-tries have decided to elevate theirstrategic ties to a ComprehensiveStrategic Partnership to provide it anew momentum.

"Our decision to upgradeour Strategic Partnership to aComprehensive StrategicPartnership captures the intentand path of our future coopera-tion. It will provide a new direc-tion, momentum and substanceto our bilateral cooperation,"said Modi, who arrived hereyesterday on his maiden visit tothis key south east Asian nation.

Vietnam had earlier Compre-hensive Strategic Partnershiponly with Russia and China.

"I am also happy to announcea new Defence Line of Credit forVietnam of USD 500 million forfacilitating deeper defence coop-eration," Modi said after the sign-ing of the agreements.

The 12 agreements weresigned in a wide range of areascovering defence, IT, space,cyber security and sharingwhite shipping information inpresence of Modi and Phuc.

"The range of agreements

signed just a while ago point tothe diversity and depth of ourcooperation," he said, adding theagreement on construction of off-shore patrol boats is one of thesteps to give concrete shape to thebilateral defence engagement.

Modi described his talkswith Vietnamese counterpart as

"extensive and very productive"and said they covered the fullrange of bilateral and multilat-eral cooperation.

"We have agreed to scale upand strengthen our bilateralengagement. As two importantcountries in this region, we alsofeel it necessary to further our tieson regional and international issuesof common concern," said Modi,who is here on a day-long visit.

"We also recognised the needto cooperate in responding toemerging regional challenges,"the Prime Minister said, withoutnaming any country.

China is involved in a ragingdispute with the Philippines,Vietnam, Taiwan, Malaysia andBrunei over ownership of territo-ry in the South China Sea (SCS),a busy waterway through whichIndia's 50 per cent trade passes.

China has also objected in thepast to India's Oil and NaturalGas Commission (ONGC) under-taking exploration at the invita-tion of Vietnam in the SCS, whichis believed to be rich in underseadeposits of oil and gas.

India and the US have beencalling for freedom of passagein the international waters,much to the discomfort toBeijing, whose claim over SCSwas recently struck down by aninternational tribunal in favour

of the Philippines."Our common efforts will

also contribute to stability, secu-rity and prosperity in thisregion," Modi said.

Vietnam has shown a keeninterest cooperating with India inair and defense production.India's L&T will build offshorehigh speed patrol boats forVietnamese Coast Guards, whilea pact was signed on cooperationin UN peacekeeping matters.

Indian Navy and VietnamNavy will cooperate in sharingof white shipping information.

Modi said as the two impor-tant countries in this region,India and Vietnam feel it neces-sary to further their ties onregional and international issuesof common concern.

The Prime Minister alsoannounced a grant of USD 5million for the establishment ofa Software Park in theTelecommunications Universityin Nha Trang.

"We agreed to tap into thegrowing economic opportunitiesin the region," said Modi, the firstIndian premier to visit theCommunist country in 15 years.

Noting that enhancing bilateralcommercial engagement is thestrategic objective of the twonations, he said, "For this, newtrade and business opportunitieswill be tapped to achieve the tradetarget of USD 15 billion by2020."(PTI)

SUNDAY, SEPTEMBER 4, 2016 (PAGE 16) DAILY EXCELSIOR, JAMMU

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Prime Minister Narendra Modi and Prime Minister ofSocialist Republic of Vietnam Nguyen Xuan Phuc witnessing thesigning of agreements between India and Vietnam, at thePresidential Place, in Hanoi, Vietnam on Saturday.(UNI)

India extends USD 500 mln to Vietnam to bolster defence ties

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