Hanoi: Indian Prime Minister Narendra Modi made a detour to Vietnam before attending the G20 Summit that was held in China. It was the first time in 15 years that an Indian Prime Minister had visited the country and it was for no small issue either. Twelve MoUs covering the sectors of defense, space, IT, health, mutual recognition of standards, and cyber security were signed, as well as an MoU on cooperation between the Vietnamese Academy of Social Science and Indian Council of World Affairs. India also pledged $ 5 million to set up a software park in Vietnam. Narendra Modi stated “I am also happy to announce a new Defence Line of Credit for Vietnam of USD 500 million for facilitating deeper defence cooperation. Our common efforts will also contribute to stability, security and prosperity in this region.”
Along with this, both Modi and Nguyen Xuan Phuc, the prime minster of Vietnam, welcomed the facilitation of ongoing Indian projects and investments in Vietnam. Vietnamese companies were also invited to India to take advantage of the various flagship schemes and programs of the government. Mr. Modi stressed that enhancing bilateral commercial engagement between the two countries constituted an important issue in the comprehensive strategic agenda.
Given the South China Sea issue, Beijing-Hanoi relations have also not been smooth over the past years. Negative emotions toward Beijing among the Vietnamese people have also been rising. Under such a backdrop, Modi’s visit to Vietnam has without a doubt made Indians associate the tour with many strategic meanings, believing that New Delhi and Hanoi might jointly pile pressure on Beijing. Both leaders said ties would be upgraded to the level of “comprehensive strategic relationship” and bilateral trade would almost doubled to $15 billion by 2020.
