India opens Vietnam's defensive line of credit worth $ 500 million

India opens Vietnam's defensive line of credit worth $ 500 million


HANOI (Reuters) - gave Indian Prime Minister Narendra Modi to Vietnam on Saturday, line of credit at half billion dollars on defense cooperation to give a boost to the country quickly seek a military deterrent with the intensification of conflicts in the South China Sea.



The agreement came within 12 cooperation agreement signed by Moody's in Hanoi with his Vietnamese counterpart Nguyen Xuan Facebook during the first visit by an Indian prime minister to Vietnam 15 years ago.



And linking India and Vietnam share a border and have huge commercial operations with China, which is often disagreed with it because of disputes over sovereignty in the Himalayan region and the South China Sea.



Countries and enhances Dvaathma also strongly promoted by India for the BrahMos missile which

outpace the speed of sound. India is trying to sell the missile to Vietnam and four other countrie, according to a government statement seen by Reuters in June.



It is unclear whether the latter includes a credit line of $ 100 million already India has agreed to make available to Vietnam for four patrol ships in a deal that was agreed upon in late 2014.



Moody's said in a speech to the media that the credit line is intended "to facilitate mutual defense cooperation" and that the relationship between the two countries "will contribute to the stability, security and prosperity in this region."


Modi, who was on his way to attend the Group of Twenty summit in China did not say anything about the patrol ships or BrahMos missiles did not comment on what to do with Vietnam's credit line.


Iji and provide credit line after an increase of nearly 700 percent in Vietnam defense purchases starting from 2015, according to the Stockholm International Peace, a think tank following the arms trade over five years.