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India grants $500 mn to Vietnam for defence ties (Relevant for GS Mains Paper II, Topic: Indo-Vietnam Ties)

Prime Minister Narendra Modi, held wide-ranging talks with his Vietnamese counterpart Nguyen Xuan.

Comprehensive Strategic partnership
Upgradation of Strategic Partnership between India and Vietnam to a Comprehensive Strategic Partnership.Vietnam earlier had Comprehensive Strategic Partnership only with Russia and China.
Comprehensive Strategic partnership signifies wider areas of cooperation between the teo countries.

Agreements signed
1. India extended a $500-million line of credit to Vietnam to deepen their defence cooperation. Under this agreement, India would provide offshore patrol vessels to Vietnam. These vessels can be used by       Vietnam for patrolling South China Sea Region.
2. The other agreements were signed in a wide range of areas covering Defence, IT, Space, cyber security and sharing shipping information. 

What is South China Sea conflict?
It is a dispute over territory and sovereignty over ocean areas, and the Paracels and the Spratlys – two island chains claimed in whole or in part by China, Vietnam, the Philippines,Taiwan, Malaysia and Brunei.  

Why are they worth arguing over?
Although largely uninhabited, the Paracels and the Spratlys may have reserves of natural resources around them. There has been little detailed exploration of the area, so estimates are largely extrapolated from the mineral wealth of neighbouring areas.
The sea is also a major shipping route and home to fishing grounds that supply the livelihoods of people across the region.

Vietnam’s Viewpoint
Vietnam hotly disputes China's historical account,saying China had never claimed sovereignty over the islands before the 1940s.Vietnam says it has actively ruled over both the Paracels and the Spratlys since the 17th Century – and has the documents to prove it.



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