India and Vietnam increase cooperation across various sectors

Prime Minister Modi's visit to Vietnam is the first visit by an Indian premier in the last 15 years.

Although India and Vietnam's cultural ties go back centuries, there's a renewed focus on their bilateral relationship owing to PM Modi's 'Act East Policy' which is aimed at building partnerships with India's eastern neighbours.

These partnerships will encompass security, counter-terrorism, political, defence and economic ties.

In recent years, Vietnam has aggressively been expanding and modernizing its military arsenal amid simmering territorial disputes with China in the strategic South China Sea.

Beijing has built artificial islands that are capable of supporting military activities. This has perturbed countries like Vietnam which also lay claim to the same territories.

Nearly 50 percent of India's trade also passes through the South China Sea.

Prime Minister Narendra Modi, who is on a two day visit to Vietnam, said both countries recognized the growing need for cooperation in order to respond to emerging regional challenges.

India and Vietnam upgraded their Strategic Partnership to a comprehensive Strategic Partnership to lend renewed momentum, focus and direction to bilateral cooperation.

Vietnam had earlier executed a Strategic Partnership with Russia and China.

Prime Minister Narendra Modi described his discussions with his Vietnamese counterpart as "extensive and very productive".

The two countries signed 12 agreements across a diverse range of sectors such as double taxation, health cooperation, space exploration, cyber security, IT cooperation and sharing of white shipping information.

India also offered to provide a $500 million line of credit to Vietnam for defence cooperation.

In a sign of defence engagement taking shape, an agreement was signed to construct offshore patrol boats.

India's Larsen & Toubro will build these high-speed boats for Vietnamese Coast Guards.

Both the countries' navies will increase cooperation with respect to white-shipping information i.e. information about commercial shipping and movement of cargo ships.

An agreement for cooperation in UN peacekeeping matters was also signed.

A $5 million grant was announced by India for a Software Park in the Telecommunications University in Nha Trang.

India and Vietnam also signed an agreement to establish sustainable IT Infra for advanced IT training protocol.

Enhancing the bilateral commercial-relationship is a key strategic objective; new business and trade opportunities will be tapped to achieve trade worth $15 billion by 2020.