The Export-Import Bank of India (Exim Bank) will extend lines of credit worth $300 million to Vietnam for purchasing high-speed guard boats and offshore patrol vessels. This financial support is part of India’s effort to strengthen defense cooperation with Vietnam.
According to the Reserve Bank of India (RBI), Exim Bank signed an agreement with the Government of the Socialist Republic of Vietnam (GO-VNM) on July 31, 2024. Under this agreement, India will provide a $180 million Line of Credit (LoC) to Vietnam for the procurement of four Offshore Patrol Vessels (OPVs).
Additionally, Exim Bank has entered into another agreement with Vietnam for a $120 million LoC to facilitate the purchase of high-speed guard boats.
Both agreements will come into effect from January 20, 2025, and the funds will be available for disbursement for up to 60 months after the project’s scheduled completion date. The export of eligible goods and services from India will be subject to the Foreign Trade Policy.
This financial assistance is expected to enhance Vietnam’s maritime security and strengthen bilateral relations between India and Vietnam.
