During a visit to Hanoi on 3 September, Indian Prime Minister announced, “a new defence credit of U$500 million for facilitating deeper defence cooperation.”
The announcement comes immediately after defence officials of the two nations signed a number of agreements including defence technology exchange and cybersecurity cooperation.
India and Vietnam have common security interests in the South China Sea, through which about 50% of India’s global trade passes. China’s recent activities in establishing the potential for a military presence on islands and outcrops in the area cause concern to both governments.
According to the Stockholm International Peace Research Institute, Vietnam was the eighth largest importer of defence equipment 2011-2015, with 90% of its contracts placed with traditional suppliers Russia, Ukraine and Spain. The new line of credit will likely result in contracts with Indian companies and follows an earlier 2014 $100 million agreement to be used for the procurement of new patrol boats.
The announcement comes immediately after defence officials of the two nations signed a number of agreements including defence technology exchange and cybersecurity cooperation.
India and Vietnam have common security interests in the South China Sea, through which about 50% of India’s global trade passes. China’s recent activities in establishing the potential for a military presence on islands and outcrops in the area cause concern to both governments.
According to the Stockholm International Peace Research Institute, Vietnam was the eighth largest importer of defence equipment 2011-2015, with 90% of its contracts placed with traditional suppliers Russia, Ukraine and Spain. The new line of credit will likely result in contracts with Indian companies and follows an earlier 2014 $100 million agreement to be used for the procurement of new patrol boats.