India views South Asia and the Indian Ocean Region as its traditional sphere of influence while China sees the South China Sea as its backyard. In the past, China has objected to India’s ONGC Videsh Ltd exploring for oil in blocks off the Vietnamese coast in the South China Sea—claiming it to be in its territorial waters. Another pact envisages the setting up a $50 million coal terminal in Vietnam, Tran Le Tien said. According to the ambassador, the two countries will aim to deepen trade and defence ties during the president’s trip. India had extended a $500 million line of credit to purchase military equipment during a visit by Modi to Vietnam in 2016.

Source: Mint February 27, 2018 18:22 UTC