New Delhi: India and Vietnam on Thursday, July 31, reaffirmed their commitment to strengthening defence ties and continued cooperation in the oil and gas sector on Vietnam’s South China Sea continental shelf, while advocating for a peaceful resolution of disputes.
Prime Minister Narendra Modi and visiting Vietnamese Prime Minister Pham Minh Chinh engaged in extensive discussions, with the South China Sea situation and the Indo-Pacific region key topics on their agenda.
“In our Act East policy and our Indo-Pacific vision, Vietnam is an important partner. We share unison in our views regarding the Indo-Pacific region,” Modi said in his press statement following the formal delegation-level talks.
Vietnam occupies a strategic position in the South China Sea as one of the littoral countries involved in a maritime dispute with China over claims in the region.
In his remarks delivered in Hindi, Modi stated that the two sides supported “vikaasvaad (developmentalism)”, rather than “vistaarvaad (expansionism)”. “We will continue our cooperation for a free, open, rules-based and prosperous Indo-Pacific,” he added.
Prime Minister Pham acknowledged that the “Asia-Indo-Pacific” region is a driving force for global growth but also noted that it is increasingly becoming a hotspot for “major power politics,” which are growing “fiercer.”
He emphasised that both leaders underscored the importance of “peace, stability, security, and freedom of navigation and overflight in the South China Sea,” advocating for the peaceful resolution of disputes in accordance with international law, particularly the 1982 United Nations Convention on the Law of the Sea.
The joint statement issued after the discussions noted that the two leaders “reiterated their mutually beneficial cooperation in the oil and gas sector, including exploration and production on Vietnam’s continental shelf.”
Speaking to reporters, MEA Secretary (East) Jaideep Sarkar highlighted that India’s state-run ONGC Videsh has been operating a block with Vietnam and Russian oil majors for 35 years. “The oil wells there have been productive for a long time. We also extended the concession last year and look forward to new exploration in that region,” he said.
This is significant because China’s claims through the nine-dash line overlap with some of the oil blocks allotted by Vietnam in the South China Sea.
One of the main outcomes of the visit was the signing of agreements between India’s EXIM bank and Vietnam finance ministry to utilise $300 million line of credit that was announced during the visit of the Indian PM to Hanoi in 2016.
“This was part of the package that the Prime Minister, during his visit to Vietnam, had announced some time ago, and the actual identification of the projects that these two lines of credit will be used for has now been completed. One of them is for Coast Guard ships and the other is for fast border patrol boats,” said Sarkar.
The two countries also decided to operationalise the Implementing Arrangement on Hydrography and establish a Joint Committee.
Besides, India and Vietnam also agreed on a Plan of Action for the implementation of the “Comprehensive Strategic Partnership” for the next four years.
Although Vietnam has a dispute with China over the South China Sea, it has not affected its relationship with the country, its largest trading partner. In fact, Chinese President Xi Jinping visited the Vietnamese embassy in Beijing last month to sign the condolence book for the passing of General Nguyen Phu Trong, leader of the Communist Party of Vietnam.
Currently, despite grappling with domestic turmoil from an anti-corruption campaign, Vietnam finds itself in a diplomatic sweet spot. Over the past eight months, it has welcomed Chinese President Xi Jinping, US President Joe Biden, and Russian President Vladimir Putin. Moreover, it has emerged as a prime destination for international companies seeking to shift their supply chains away from China.
