Japan will provide Vietnam Coast Guard with six patrol boats in a lease-financing deal worth 36.6 billion yen ($345 million).
The Japan International Cooperation Agency inked the agreement with the Vietnamese government in Hanoi on July 28, according to the JICA, Kyodo news agency reported adding that the six vessels will be new Japanese-made boats.
"The project will provide the Vietnam Coast Guard with financing to procure vessels, supporting an improvement in maritime rescue operations and maritime law enforcement," the JICA said in a statement. "It will also enhance freedom of navigation."
Vietnam is facing aggressive Chinese moves in the South China Sea with fishing boats supported by PLA Coast guard vessels driving out Vietnamese fishermen from their own waters. There have been several skirmishes between the two sides in recent months.