Vietnam is forging ahead with efforts to maintain a defence posture in an increasingly uncertain and fraught regional environment. The nation’s steadfast stance in focussing on its territorial protection and maintaining regional security stability, is driving the need for modernisation...
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Vietnam is forging ahead with efforts to maintain a defence posture in an increasingly uncertain and fraught regional environment. The nation’s steadfast stance in focussing on its territorial protection and maintaining regional security stability, is driving the need for modernisation of its armed forces with support from partner nations. Nowhere is Vietnam’s effort to broaden its defence supplier base, more evident, than at the ongoing Vietnam Defence Expo, which has opened with the theme ‘Peace, Friendship, Cooperation for Mutual Development.
Nearly 200 companies from nearly 30 countries are displaying their wares at Gia Lam Airport, with 100,000 sq.m of exhibition space divided into three sections. Some of the main exhibitors are from the USA, France, China, Japan, South Korea and India. Vietnam’s Ministry of National Defence is also commemorating the 80th founding anniversary of the Vietnam People’s Army (VPA) and the 35th anniversary of the All-people’s National Defence Day this year.
International defence cooperation is a key linchpin of Vietnam’s military modernisation programme, with defence equipment being sourced from several nations. Vietnam has able to afford some of the largest increases in military expenditures in Southeast Asia between 2003 and 2018 and as per information from the Stockholm International Peace Research Institute (SIPRI). This 15 year period witnessed Vietnam’s defence spending grow from US$ 841 million in 2003 to US$ 5.5 billion in 2018, an increase of approximately 700%.
Vietnam’s military expenditure recorded at USD 5.5 billion in 2018 was 8.1% of total government spending and 2.3% of its GDP. Various informed market intelligence reports have stated that Vietnam’s defence expenditure will grow to approximately US$8.5 billion by 2027. Vietnam was ranked amongst the top six arms importers in the APAC region during 2010-2022, joining India, China, Australia, South Korea and Japan. The country was also ranked fifteenth on the list of top arms importers in the world between the years 2010 and 2022.
Planned Procurement
At the present moment, Vietnam is following a carefully selected military modernisation effort. Some of these procurements are related to increased demand for naval combatants, aerial defence, intelligence systems, and surveillance and reconnaissance equipment.
The planned procurements are most evident with the Vietnam Air Force, which has opted to modernise its basic aircraft training (T-6C Texan II) and advanced jet trainer fleet (Aero L-39 NG), before proceeding with fighter class replacements. The air force’s most advanced fighter jets, Russian built Sukhoi SU-30 MK2Vs were procured only about a decade ago. It also acquired Air Defence (AD) systems from Russia between 2003-2010. Vietnam is also said to be eyeing the procurement of F-16 fighter jets and C-130 transport aircraft, which again emphasise the procurement of platforms which are affordable to procure, operate and sustain.
Vietnam-USA defence relations have gone from strength to strength since 2016, when the latter lifted its arms embargo. From FY 2016 to FY 2021, the United States authorized the permanent export of US$29.8 million in defense articles to Vietnam via Direct Commercial Sales (DCS), related to Fire Control / Night Vision (US$25.5 million), Electronics (US$1.8 million), Firearms and related articles (US$777,592). Other key equipment transferred by the USA, include the transfer, refurbishment, and sustained maintenance of two former U.S. Coast Guard cutters under the Excess Defence Articles programme to the Vietnam Coast Guard, T-6 trainer aircraft, ScanEagle UAS, and purchase of MetalShark patrol boats.
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