The announcement came after Modi held talks with his visiting Vietnamese counterpart, Nguyen Tan Dung, during which the two sides agreed to modernize the Vietnamese military as well as raise Indian involvement in Vietnam's energy sector.
"Our defense cooperation with Vietnam is among our most important," Modi told reporters, adding it will be expanded.
Top of the agenda is the sale of four offshore patrol vessels that Vietnam wants to improve its defenses in the energy rich-South China Sea where it is locked in competing claims with China.
Talks on the naval craft have gathered pace since last month when India announced a $100 million credit line for defense purchases, an Indian government official earlier told Reuters.
"We will quickly operationalise the $100 million Line of Credit that will enable Vietnam to acquire new naval vessels from India," Modi said.
Vietnam wants the craft for surveillance off its coast and around its military bases in the Spratly island chain in the South China Sea where it is building a credible naval deterrent to China with Kilo-class submarines from Russia.
Read more at Reuters
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