India Announces $300 Million Loan to Vietnam During Vietnam PM Visit

The government of India has announced two loans totalling  $300 million to Vietnam during the visit of the Prime Minister of Vietnam, Pham Minh Chinh. The loan is for strengthening Vietnam’s maritime security. 

The Vietnamese Prime Minister was on an official three-day, from 30 July to -1 August 2024 visit to India. 

Nine agreements were signed between India and Vietnam during the visit of the Vietnamese Prime Minister Pham Minh Chinh.  During the visit, it was announced that Vietnam will join the Coalition for Disaster Resilient Infrastructure (CDRI).

Significance of the Vietnamese Prime Visit to India

This is the first visit of a Vietnamese leader to India after India and Vietnam established their comprehensive strategic partnership in September 2016. India became the third country in 2016 after China (2008) and Russia (2012), with which Vietnam has signed a comprehensive strategic partnership. India has a close relationship with Vietnam and shares strong defence ties.

Nine Agreements signed during Vietnamese Prime Minister’s Visit 

Vietnamese Prime Minister Pham Minh Chinh met Prime Minister Narendra Modi on 1 August 2024 in New Delhi. Both leaders virtually inaugurated the Army Software Park at Telecommunications University in Nha Trang, Vietnam. The Army Software Park has been built with a $5 million grant from India. 

Nine Memorandum of Understanding (MoU) were signed between the two countries.

• Both countries to cooperate in the Capacity Building of the Customs departments of both the countries.
• The Central Agricultural University, Imphal, Manipur, will cooperate with the Vietnam Academy of Agricultural Sciences, Hanoi, Vietnam, to promote agricultural research and education.
• To promote cooperation in the legal field between the Ministry of Justice, Vietnam and the Union Ministry of Law and Justice.
• Promote cooperation on Radio and Television between the two countries
• India to provide two loans totalling $300 million to Vietnam
• India will help Vietnam in the conservation and restoration of F Block in My Son, Quang Nam Province, Viet Nam.
• Cooperation in the field of medicinal plants.
• Agreement to develop National Maritime Heritage Complex (NMHC) at Lothal, Gujarat.
• Both countries will work out a plan of action for implementing the Comprehensive Strategic Partnership during the 2024-2028 period.

About Vietnam 

Vietnam is a Southeast Asian country which is a member of the Association of Southeast Asian Nations (ASEAN).

It is a communist country which is ruled by the Communist Party of Vietnam.

Capital: Hanoi

Currency: Dong

President: To Lam

Prime Minister :Pham Minh Chinh