India and Vietnam on Saturday stressed the need to reform the United Nations and expansion of its Security Council, with “enhanced representation” from developing countries, even as Vietnam’s top leaders lauded India’s support on the disputed South China Sea (SCS). As India extended a $500-million line of credit to the nation, the leaders hailed the upgradation of bilateral ties to Comprehensive Strategic Partnership.
According to a joint statement issued by the two countries after a meeting between Prime Minister Narendra Modi and Vietnam Prime Minister
Nguyen Xuan Phuc, India and Vietnam also signed 12 agreements in a wide range of areas covering Defence, information technology, space, double taxation and sharing white shipping information, signalling a strong upward push in their strategic ties. The agreements were signed by officials of the two sides in presence of Modi and Phuc here.
"12 for togetherness! India & Vietnam sign a dozen agreements for further strengthening the Strategic Partnership," External Affairs Ministry Spokesperson Vikas Swarup tweeted.
India also extended a $500 million line of credit to Vietnam to deepen their Defence cooperation including a deal to construct offshore patrol boats, amid China's muscle flexing in the disputed South China Sea and "emerging regional challenges".
Modi, who held wide-ranging talks with Phuc here, said the two countries have decided to elevate their strategic ties to a Comprehensive Strategic Partnership to provide it a new momentum.
"Our decision to upgrade our Strategic Partnership to a Comprehensive Strategic Partnership captures the intent and path of our future cooperation. It will provide a new direction, momentum and substance to our bilateral cooperation," said Modi, who arrived here on Friday on his maiden visit to this key south east Asian nation.
Vietnam had earlier Comprehensive Strategic Partnership only with Russia and China.
"I am also happy to announce a new Defence line of Credit for Vietnam of $500 million for facilitating deeper Defence cooperation," Modi said after the signing of the agreements.
Modi described his talks with Vietnamese counterpart as "extensive and very productive" and said they covered the full range of bilateral and multilateral cooperation.
"We have agreed to scale up and strengthen our bilateral engagement. As two important countries in this region, we also feel it necessary to further our ties on regional and international issues of common concern," said Modi.
"We also recognised the need to cooperate in responding to emerging regional challenges," the Prime Minister said, without naming any country.
China is involved in a raging dispute with the Philippines, Vietnam, Taiwan, Malaysia and Brunei over ownership of territory in the SCS, a busy waterway through which India's 50 per cent trade passes.
China has also objected in the past to India's Oil and Natural Gas Commission (ONGC) undertaking exploration at the invitation of Vietnam in the SCS, which is believed to be rich in undersea deposits of oil and gas.
India and the US have been calling for freedom of passage in the international waters, much to the discomfort to Beijing, whose claim over SCS was recently struck down by an international tribunal in favour of the Philippines.
"Our common efforts will also contribute to stability, security and prosperity in this region," Modi said.
Significantly, in a meeting with top Vietnamese leaders, Communist Party general secretary Nguyen Phu Trong told Modi that Vietnam appreciates India's principled position on the SCS.
"We must also intensify our coordination in regional and multilateral fora," he told Modi, who reiterated that India always stood as a friend with Vietnam throughout history.
"It would be rare to find such a relationship which has lasted 2,000 years," Modi told Trong and recalled the Vietnamese leader's visit to India in 2013.
Modi also called on Vietnamese President Tran Dai Quang at the Presidential Palace. "Our partnership will strengthen peace, development and security in the region," President Quang told Modi.
President Quang said Vietnam fully supports India's Act East Policy and thanked New Delhi for its consistent support to socio-economic development of this south east Asian nation.
He welcomed the upcoming 45th anniversary of diplomatic ties between India and Vietnam and 10th anniversary of the establishment of the Strategic Partnership which has been now elevated Comprehensive Strategic Partnership.
Modi recalled Quang's visit to India in 2013 as Minister for Public Security.
He said greater economic partnership would be a win-win for both countries. As ASEAN country coordinator for India during 2016-18, Vietnam can take forward relations between the two sides even further, he added.
Quang called for frequent high-level exchanges to further strengthen political trust between the two sides. He sought further support from India in investment, education, training and science and technology.
He also sought more Indian participation in oil and gas sectors of Vietnam, sources said.
Both the leaders expressed great optimism for the future of India Vietnam ties.
Prime Minister Modi invited Quang to visit India. President thanked him for the invitation.
Earlier, Prime Minister Modi met with Speaker of National Assembly Nguyen Thi Kim Ngan. The two leaders called for greater parliamentary exchanges between the two countries.
Ngan said she would be visiting India in December. She recalled long standing historical and cultural ties with India and said as a young girl she used to watch Indian films.
The two leaders applauded the decision to upgrade the ties to a Comprehensive Strategic Partnership, sources said.