World

India's Modi offers Vietnam $500 million credit line for defence cooperation

Vietnam is in the midst of major military buildup that analysts say is a deterrent as China grows more assertive

Reuters September 03, 2016

india 039 s prime minister narendra modi r reviews the guard of honour with his vietnamese counterpart nguyen xuan phuc during a welcoming ceremony at the presidential palace in hanoi vietnam september 3 2016 photo reuters

India's Prime Minister Narendra Modi (R) reviews the guard of honour with his Vietnamese counterpart Nguyen Xuan Phuc during a welcoming ceremony at the Presidential Palace in Hanoi, Vietnam September 3, 2016. PHOTO: REUTERS

Indian Prime Minister Narendra Modi said on Saturday his country would provide a credit line of half a billion dollars to Vietnam for defence cooperation, the latest sign of closer ties between two countries with separate territorial disputes with China.

Indian troops carry out ‘unprovoked’ firing along LoC

The credit offered by Modi, the first Indian prime minister to visit Vietnam in 15 years, was among a dozen cooperation agreements he signed in Hanoi alongside Vietnamese counterpart Nguyen Xuan Phuc.

Vietnam is in the midst of a major military buildup that analysts say is a deterrent as neighboring China grows more assertive in staking its rival claims in the South China Sea.