“Our decision to upgrade our Strategic Partnership to a Comprehensive Strategic Partnership captures the intent and path of our future cooperation”, Modi said a joint press statement with Vietnamese Prime Minister Nguyen Xuan Phuc following delegation-level talks here.
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As for China, well, let Beijing read between the lines.
Modi also touched on UK’s visa policy.
The deal was among a dozen cooperation agreements Modi signed in Hanoi alongside his Vietnamese counterpart, Nguyen Xuan Phuc, on the first visit to the country by an Indian prime minister in 15 years.
Before leaving in the evening, Modi also made a visit to Quan Su Pagoda, where he talked about the centuries-old Buddhist ties between the two nations.
But Modi’s trip assumes greater significance.
India’s bilateral trade with Vietnam now stands at $7.8 billion. On an earlier occasion, India’s ambassador to Vietnam, P. Harish, had remarked that all parties must respect UNCLOS, since it represents the foundational aspect of the global law of seas and oceans. The ruling came July 12. “It is something that both sides are aware of”, Swarup said. India and the United States have been calling for freedom of passage in the worldwide waters, much to the discomfort to Beijing, whose claim over South China Sea was recently struck down by an global tribunal in favour of the Philippines.
“Building the BRICS within G-20!”
Chinese President Xi Jinping in his remarks today praised the Prime Minister’s leadership of the Indian economy especially his energy policy.
On the second day of summit in east Chinese city of Hangzhou, Modi on Monday raised the issue and urged the member countries to take action against the financial corruption and to show “full commitment” to action against the financial corruption.
Xis comments came in the backdrop of a raft of differences between the two countries including listing of Pakistan-based terrorist organisations in the UN, China stalling Indias membership at the elite Nuclear Suppliers Group (NSG) and the Dollars 46 billion China-Pakistan Corridor being built through Pakistan-occupied Kashmir (PoK). In 2013, an incursion in April-May in the Depsang, Ladakh, had threatened to derail a visit to India by Chinese Premier Li Keqiang. However, the percentage of trade with Vietnam is still minimal, making up only about 1.22 percent of India’s total trade.
“India has always been cautious when it comes to directly putting the screw on China”.
“I am also happy to announce a new defence line of credit for Vietnam of $500 million for facilitating deeper defence cooperation”.
He said the agreement on construction of offshore patrol boats was “one of the steps to give concrete shape to our defence engagement”.
India and Vietnam also agreed to pacts involving information technology, space, health, double taxation and other matters.
“As a matter of principle, both countries would have to be sensitive to each other’s strategic interests”, Swarup said while touching upon broad themes that Modi stressed upon during his almost 30-minute bilateral with Xi, their eighth meeting.
Indo-Vietnam trade, which has been growing at an annual rate of about 26% the past few years, now stands at $7.8 billion. “Under Vietnam’s leadership as ASEAN Coordinator for India, we will work towards a strengthened India-ASEAN partnership across all areas”.
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The boundary dispute dates back to a brief but bitter border war between the two countries in 1962. This can be complemented by the increased manufacturing capacities of both India and Vietnam, which have been getting good amount of FDI in their manufacturing sectors. The money has gone into oil and gas exploration, sugar processing, IT training and other fields.
