Jul. 29 – The Indian Government has provided Vietnam with a US$100 million credit line for the purchase of four patrol vessels. The credit line was granted in light of the Vietnamese Government inviting India to explore for oil in the Phu Khanh basin in the South China Sea, which Vietnam considers its territory.
China, however, claims the entire South China Sea as exclusively its own, and maintains that the Phu Khanh basin is within its “nine dotted line.”
India has further provided funding for Vietnam’s 200MW Hydel Power generation project, as well as provided assistance with supercomputing technologies. Bilateral trade between the two countries is also increasing as a result of the India-ASEAN free trade agreement to which Vietnam is a signatory.
As numerous Asian nations begin to worry about China’s increasing push and territorial demands in these waters, India has been engaging with many of them as part of its “Look East” policy. India has been offering trade incentives to lessen dependence on China and also military assets.
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