India is set to establish a satellite tracking and imaging centre in southern Vietnam’s Ho Chi Minh City. This will give Hanoi access to images from Indian earth observation satellites that cover the region, including China and the South China Sea, Indian officials said. Experts believe the move will benefit both sides – Vietnam can use the improved imaging technology from these satellites for military purposes such as surveillance and reconnaissance operations, while the centre will help India expand its reach, Reuters reported.

However, it is feared that China will not be pleased with this boost in ties between India and Vietnam, both of which have long-running territorial disputes with the country. Security experts believe Vietnam will be interested in Chinese coastal naval bases, the operations of its navy and coastguard, as well as its new man-made islands in the disputed South China Sea. The Chinese Defence Ministry said the tracking station was not a military issue.

The project, estimated to cost $23 million (Rs 155 crore), will be undertaken and funded by the Indian Space Research Organisation. ISRO spokesman Deviprasad Karnik said the Vietnam facility will help India track its satellites better in their initial stages of flight. India has ground stations in the Andaman and Nicobar islands, Brunei, Biak in eastern Indonesia and Mauritius. Karnik said the project has no timeline currently, adding that they are still in dialogue.