India gives Vietnam $680 million for defence spending
India said on September 3 it is giving Vietnam US$500 million in credit to boost defence ties, the latest security deal between the two nations seeking to counter Beijing’s muscle-flexing in the South China Sea. Indian Prime Minister Narendra Modi made the announcement during a visit to Hanoi, which has gone on a spending spree in recent years to expand and modernise its military arsenal amid territorial disputes with Beijing in the strategically vital waterway. “I am also happy to announce a new defence credit for Vietnam of US$500 million for facilitating deeper defence cooperation,” Mr Modi told reporters after signing the deal. He did not specify details of the arrangement, but traditionally such lines of credit would oblige Vietnam to sign contracts with Indian companies.
