However, Modi emphasised to Nguyen that the proposed South China Sea code of conduct should not undermine the legitimate “rights and interests” of countries that were not a party to these negotiations. China has pressed Asean members to refrain from joint naval exercises and involving countries that are not part of the talks, in what is perceived as a reference to the United States’ increased presence in the waterway.

“The timing and content of the summit are important in the light of Chinese aggression in Ladakh and its continual maritime aggression against Vietnam,” said Kanwal Sibal, a former Indian foreign secretary.

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“The joint statement enunciates much more emphatically than in the past, the shared position of the two countries on the South China Sea and the primacy of Unclos,” Sibal said.

The former foreign secretary felt the mutual support in the face of China’s “expansionism” would send a diplomatic signal to China about the stiffening of positions against its policies and could result in more Asean countries voicing these concerns. He added that it could also lead to Vietnam joining the Quad – the informal forum between the US, India, Japan, and Australia – or the G7 Outreach, two groupings from which China is excluded.

In August, Vietnam expressed concern over China’s repeated military exercises that not only violated its sovereignty but also complicated negotiations for the code of conduct.

AGREEMENTS

India also handed over a high-speed guard boat to Vietnam, one of 12 such vessels. Five are being built in India and seven in Vietnam, funded by a separate US$100 million line of credit from India.

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The summit also saw the two countries sign seven agreements for cooperation in defence, nuclear energy, petrochemical and renewable energy as well as heritage conservation. The energy partnerships highlighted at the summit cover not only existing agreements in the oil and gas sectors, but also in renewables and cooperation in India’s solar industry.

However, despite media reports about a possible US$1.1 billion investment in oil exploration in Vietnam by Indian company Essar, there was no mention of it in the official statement.

“Vietnam is the new powerhouse in Asia and the emerging hub of FTAs [free-trade agreements] in the world,” said Prabir De, coordinator of the Asean-India Centre at the Research and Information System for Developing Countries, a Delhi-based think-tank.

The summit has taken relations to a higher level, according to De, who pointed out that bilateral trade could reach US$20 billion by 2022 while there had also been a steep increase in production links between the two countries.

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“Given the healthy political relations they enjoy, India and Vietnam may consider a free-trade agreement which would help raise Indian exports to the world using Vietnam as a trade transit country,” he said.

In January, the 13th Party Congress of the Communist Party of Vietnam will be held, during which new party leadership will be chosen, particularly the new secretary general who will lay out the priorities for the next five years.

It remains to be seen how keen the new leaders of Vietnam will be in maintaining the momentum in the comprehensive strategic partnership with India in the face of an increasingly assertive China in its neighbourhood.