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My government has promptly & purposefully intensified our engagement in Asia Pacific region, which is critical to India's future -@PMOIndia — Syed Akbaruddin (@MEAIndia) October 28, 2014

Thank PM Dung for Vietnam's co-sponsorship of the resolution in the UN to declare June 21 as International Yoga Day -@PMOIndia — Syed Akbaruddin (@MEAIndia) October 28, 2014

NEW DELHI: India on Tuesday took a decisive step towards countering China's assertive power, by committing to help Vietnam's defence modernization, a move that will resonate unpleasantly in Beijing.After his meeting with visiting Vietnamese Prime Minister Nguyen Tan Dung, Narendra Modi said, "Our defence cooperation with Vietnam is among our most important ones. India remains committed to the modernization of Vietnam's defence and security forces. This will include expansion of our training programme, which is already very substantial, joint-exercises and cooperation in defence equipment. We will quickly operationalise the $100 million line of credit that will enable Vietnam acquire new naval vessels from India."For the first time, India sent clear signals that it may be willing to sell the Brahmos short range cruise missiles to Vietnam, a long-standing demand by Hanoi. The previous Indian government was a little hesitant, citing reservations by Russia (which is a co-developer). Russia has now indicated its willingness. India will wait to enter the MTCR (Missile Technology Control Regime) before making a sale, but both countries have decisively crossed this hurdle.Vietnam's importance to New Delhi was evident when President Pranab Mukherjee paid a state visit to that country, almost coinciding with Chinese President Xi Jinping's first visit to India.China warns India about taking up Vietnam's offer for oil exploration in disputed seaMaking Vietnam the heart of India's Asia-Pacific policy, the Indian government has sent a clear signal to China that it would actively pursue its interests in the region. The PM tweeted: "My government has promptly & purposefully intensified our engagement in Asia Pacific region, which is critical to India's future." Interestingly, China's state councilor Yang Jiechi (who is also the special representative for India) was in Hanoi on Monday to look for a solution to their maritime territorial disputes.Away from the media glare, Indian and Vietnamese leaders agreed to work with Japan in a trilateral format to coordinate positions on security and economic policies. India already has a trilateral with US and Japan, but a Vietnam-India-Japan trio would have big implications for the balance of power in Asia.Significantly, India has agreed to share civil nuclear cooperation with Vietnam. The Indian atomic energy sector has wanted to sell the DAE's small 220 MW nuclear reactors to Vietnam. While the 2008 NSG waiver for India opens it up for nuclear commerce, there are several other steps before India can actually export nuclear reactors. But the process has started.Modi reiterated India's stand that territorial disputes in the South China Sea should be resolved according to international law. China uses its historical claim to draw a ‘9-dash line' on the sea which it claims as its own.By deepening energy cooperation with two new agreements between ONGC and Petro Vietnam, India is cementing its position in the contentious South China Sea by laying stakes in oil and gas exploration there. New Delhi also plans to diversify its investment in upstream and downstream industries there. Vietnam is a member of the Trans Pacific Partnership (TPP) so India wants a bigger economic footprint there to take advantage of its position.Earlier this year, Vietnam allowed a $3.8 billion investment by Tata Power. This was essentially a compensation for compelling Tata Steel to pull out of an equally large investment there.Tan Dung arrived in New Delhi on Tuesday after paying a visit to Bodh Gaya. In his first interactions, he asked for visas on arrival for Vietnamese pilgrims coming to Bodh Gaya, and direct flights to the Buddhist destination. Jet Airways is slated to start flights to Vietnam from next month.This picture taken on May 14, 2014 from a Vietnamese coast guard ship shows Chinese coast guard vessels sailing near China's oil drilling rig in disputed waters in the South China Sea. (Getty Images photo)