File Photo: External Affairs Minister Sushma Swaraj (PTI)
'Look East' to 'Act East' - with these words External Affairs Minister Sushma Swaraj began her three-day visit to Vietnam - a crucial, strategically located friend in South East Asia.
The focus of the visit is economic and defence ties. The mention of good defence cooperation between the two nations during the meet was seen as a reassurance of cooperation in the sector.
High level engagement between the two countries has also intensified, with Indian President Pranab Mukherjee set to visit the country sometime in mid-September. NDTV has learnt that during this visit he will officially extend the $100 million line of credit in the defence sector - a move expected to upset China, which considers South East Asia as its area of influence.
Vietnam is fighting China over the maritime boundaries in South China Sea, rich in resources, fishing and an extremely busy sea with constant commercial traffic.
With the $100 million line of credit, Vietnam can buy two to three petrol vessels. It though has a much longer wish list. The country wants surveillance equipment, unmanned aerial vehicles, tanks, ships and Brahmos - a cruise missile.
Defence experts believe the credit is a foot in the door.
The money in the defence deal may be little but the message being sent to China is a big one.