Modi offers Vietnam $500 million credit line for defense cooperation

Hanoi: Prime minister Narendra Modi said on Saturday his country would provide a credit line of half a billion dollars to Vietnam for defense cooperation, the latest sign of closer ties between two countries with separate territorial disputes with China.

The credit offered by Modi was among a dozen cooperation agreements he signed in Hanoi alongside Vietnamese counterpart Nguyen Xuan Phuc.

Vietnam is in the midst of a major military buildup that analysts say is a deterrent as neighboring China grows more assertive in staking its rival claims in the South China Sea.

Earlier on the day, he was accorded a ceremonial welcome in front of the majestic Presidential palace here.

Modi, the first Indian prime minister to visit the communist nation in 15 years, was welcomed by Vietnamese president Tran Dai Quant.

Modi flew in here last night for a day long packed visit to Vietnam. He leaves this evening for the G20 talks in China.

After national anthems of both India and Vietnam were played by the armed forces band, dressed in sharp white with gold tassels and black gum boots, the prime minister inspected a guard of honor by the three armed forces of the host country.

Immediately afterwards Modi, in white churidar kurta with grey jacket, was taken to the humble traditional stilt house near the palace where Vietnam's beloved leader Ho Chi Minh lived intermittently between 1958-1969. He was shown the place by the Vietnamese president.