Earlier on the day, he was accorded a ceremonial welcome in front of the majestic Presidential palace here.
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Modi said the two countries have chose to deepen defence and security engagements to advance common interests.
Modi also reaffirmed India’s significant interest in promoting defence industry cooperation between the two sides and committed to provide a new Line of Credit for Vietnam in this area.
“Our decision to upgrade our Strategic Partnership to a Comprehensive Strategic Partnership captures the intent and path of our future cooperation”, he sated.
Agreements were also signed on double taxation avoidance and celebrating 2017 as the “Year of Friendship” to mark 45 years of India-Vietnam diplomatic ties.
Vietnam appreciates India’s principled position on the South China Sea issue, Communist Party General Secretary Nguyen Phu Trong told Prime Minister Narendra Modi when the latter called on him, sources said. He said he had visited India twice in 2010 and 2013 and both visits had left very good impressions.
Modi arrived in China from Vietnam, which is involved in its own dispute with China over the South China Sea, where he offered Vietnam a credit line of half a billion dollars for defence cooperation. Modi also announced a grant of $5 million for the establishment of a software park in the Telecommunications University in Nha Trang.
Although Modi didn’t mention the South China Sea issue, his statement’s focus on regional challenges signalled a recognition of the regional fallout of the dispute at a time when both India and China are competing for maritime supremacy.
Modi had congratulated May on her assumption of new responsibility on 27 July and had affirmed India’s commitment to further strengthen the strategic bilateral partnership.
“Vietnam is playing that game: ‘Come on, China, get close to us, cooperate, but if you don’t we can move to India or we’ll go talk to you after the Prime Minister of India has just been through, ‘” he said.
He called for further strengthening the global financial safety net.
“The framework agreement on space cooperation would allow Vietnam to join hands with Indian Space Research Organisation to meet its national development objectives”, he said.
Vietnam has already been chosen as the location for establishing an ISRO satellite tracking centre, however the project is under the aegis of the ASEAN-India initiative and not a bilateral arrangement. “And, have invited Vietnamese companies to take advantage of the various schemes and flagship programmes of my government”, he added.
He also sought more Indian participation in oil and gas sectors of Vietnam, sources said.
Beijingtoo has raised concerns over the close ties between Indiaand the USA and the recently signed Logistics Exchange Memorandum of Agreement (LEMOA), which will enable the militaries of both democracies access to each other’s facilities for supplies and repairs.
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The two leaders met before they attended the BRICS leaders meeting held ahead of the G20 summit.
