India and Vietnam are enhancing security ties in a move likely to heighten tensions with China over territorial disputes in the flashpoint South China Sea.

Vietnam has approved India setting up a satellite tracking and imaging centre in southern Vietnam that will that will give Hanoi access to pictures from Indian earth observation satellites that cover Asia, including China and the South China Sea.

India has 11 earth observation satellites in orbit that can provide military intelligence, with existing ground stations in the Andaman and Nicobar islands, Brunei, Biak in eastern Indonesia and Mauritius.

Carlyle Thayer, an expert on Vietnam from Australia's Defence Force Academy, said the new tracking facility shows that India's and Vietnam's interests are "converging over China and the South China Sea."