Ratan Tata-led Tata Steel will get immediate support from Vietnamese government to implement the

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$5 billion steel plant in Ha Tinh province.

State-run ONGC Videsh (OVL) will continue with exploration of gas and oil assets in South China Sea unhindered within the sovereign control of Vietnam setting aside Chinese objections.

Both India and Vietnam will expand and strengthen their trade and investment ties in next four years to forge partnership in hydrocarbons, aviation, agriculture, education and sports.

Companies from both sides will explore investment across borders in sectors like oil and natural gas, green technologies, automobiles, engineering products, banking, IT and IT-enabled services.

Both the governments will also work towards concluding an early free trade agreement (FTA) between India and Asean grouping with preferential treatment to two-way flow of goods and services.

Both India and Vietnam have also agreed to expand bilateral trade to $7 billion by 2015 from prevailing $2.7 billion annually.

Prime minister Manmohan Singh and visiting Vietnamese president Truong Tan Sang led two sides at summit-level talks on Tuesday to provide fillip to centuries old friendship between two countries.

The two sides also signed a host of agreements to cement friendship across the spectrum of economic and trade areas.

Both Singh and Sang seem to have focused on what clearly is their priority: Trade, investment and development relations without bringing China into their talks. But, it does not mean that China was not a factor in East Asia policy pursued by the UPA government. Neither does Vietnam wish away China’s muscle and economic prowess in the region.

President Sang’s thinking on China was explicit during an interaction with top Indian businessmen. Sang said, “All disputes with China, including claims over South China Sea would be solved peacefully through negotiations and code of conduct for good relations in the region.”

This was in response to questions on possible tensions in the South China Sea between Vietnam and China that may hamper OVL drilling of oil and gas operations.

In a bid to send a strong message on hydrocarbons and energy ties, PetroVietnam chairman Phung Dinh Thuc signed a fresh pact with OVL managing director SK Sarraf for dealing with value-add petroleum products.

President Truong Tan Sang gave an open invite for Indian businesses to open shop in Vietnam with opportunities in infrastructure, electrical power, ports, airports and roads.

As a first step towards cementing aviation ties, Vietnam Airlines and Jet Airways signed a pact to operate direct flight between India and Vietnam beginning July 2012.

On the delay in getting an investment licence and making available land for $5 billion investment proposed by Tata Steel in Ha Tinh pro-vince, president Sang conceded “there were some delays”.

At the business lunch hosted by CII, Ficci and Assocham jointly, president Sang said, “We understand the importance of Tata group. Indian and Vietnamese officials are trying their best to kick start the Tata project.”

The project is facing delays in obtaining investment licence for which Tata Steel had applied in 2008 and again the next year.