NEW DELHI: With a little over a month after President Pranab Mukherjee’s Vietnam visit when a defence MoU was signed the two countries are expected to conclude another defence pact when Vietnamese Prime Minister Nguyen Tan Dung is in India on October 27-28 amid China’s growing aggression in the region.This proposed pact, coming after last month’s MoU that entails 100 mn USD Line of Credit to Hanoi to purchase patrol boats to boost coastal security, is aimed at providing military hardware to Vietnam’s armed forces, official sources told ET. Both counties predominantly use Russian defence equipment and this enables smooth bilateral cooperation including maintenance and supply of spare parts to Vietnamese armed forces by Delhi, sources informed.The two countries, since becoming strategic partners in 2007, have growing defence and security ties necessitated by China’s growing ambitions in the region including South China Sea and South Asia, pointed out experts who did not wish to be quoted given the sensitivity of the matter.That the two countries are planning to expand their defence partnership was indicated by a senior South Block official. “India and Vietnam are trusted partners and there has been steady growth in defence ties. India would like to further assist Vietnam with the capacity building of its armed forces. The two countries are also looking at more joint exercises and training programs,” said Anil Wadhwa, Secretary (East), MEA while delivering a key note address to a select audience at a Round Table titled “Indo- Vietnamese Co-operation in Emerging Asia”, organized ahead of PM’s trip next week.But it is not just defence that is driving two countries closer. As India intensifies it ‘Act East Policy’ where Vietnam forms a critical pillar of Delhi’s engagement with ASEAN region, the two countries are keen to expand trade basket. The Vietnamese Prime Minister is accompanied by a 50-member high profile business delegation that wants to explore trade and investments in various sectors with an eye on reducing Hanoi’s economic dependence on Beijing.“Vietnam is looking forward to Indian investments in new sectors where India has advantages -- infrastructure and power generation and distribution, international bidding of projects in Vietnam, IT, education, pharmaceutical research and production and agro-products. India can export equipment and machineries, industrial products, raw materials for industries, pharmaceuticals and processed foods to Vietnam,” Nguyen Tuan Quang, a senior Vietnamese diplomat, told ET on the sidelines of the Round Table.Quang claimed that the Vietnamese government is creating all favourable conditions for Indian investors. The sectors where Indian firms can invest include oil and gas exploration and exploitation, infrastructure, mining, mechanical production, shipbuilding, IT, textile and garments, pharmaceuticals, processed foods, agro growing and processing, Quang informed.Culture will also be high on PM Dung's agenda as he embarks on Bodhgaya en route to Delhi with an eye on attracting more Vietnamese tourists to India. The direct flight between the two countries is finally being launched from November 5.