The visiting Vietnamese Prime Minister, Nguyen Tan Dung has said that Indian ships would be allowed into the South China Sea, a major source of hydrocarbons.

Ahead of his talks with Prime Minister Narendra Modi, the Vietnamese leader said his country supports India to increase multidimensional linkages with South East Asia and his government will continue to allow ships from other countries, including India, to visit Vietnam.

He expressed the hope that India, with its increasingly important role, will make positive and responsible contributions to the maintenance of peace and stability in the region and the world.

India and Vietnam are expected to sign an agreement for oil exploration in the South China Sea after the talks between the two Prime Ministers in New Delhi today.

Sources said, India has decided to accept 2-3 Vietnamese oil blocks in the South China Sea based on the techno-commercial feasibility report by the ONGC Videsh Limited. In addition to the current three oil blocks, Vietnam had offered India five oil blocks and the ONGC Videsh Limited was looking at them in terms of their feasibility.

Recently, Vietnam had renewed India's lease of two oil blocks in the Sea for another year. China and Vietnam have standoff over the South China Sea and Beijing has been objecting to India's oil exploration projects in the disputed waters.

Nguyen Tan Dung's visit is being seen by the Indian side as an opportunity to increase economic engagement. Power and Coal Minister Piyush Goyal said Indian infrastructure companies are keen to execute projects in Vietnam that will help more than double the bilateral trade to USD 15 billion by 2020.

At an interactive session of the visiting dignitary, he said, dialogue is on with domestic companies to set up projects in Vietnam on build, operate and transfer basis.