Future of the Vietnam Defense Industry to 2022 – Market Attractiveness, Competitive Landscape and Forecasts – Research and Markets

04-Oct-2017 Intellasia | BusinessWire | 11:12 PM Print This Post

of the Vietnam Defense Industry – Market Attractiveness, Competitive
Landscape and Forecasts to 2022″
report has been added to Research
and Markets’

Growing strength of the Chinese Navy and its assertiveness with regards
to territorial claims in the South China Sea has forced the Vietnamese
Government to enhance its military capabilities. The Vietnamese
Government allocated US$5 billion towards military expenditure in 2017,
of which 32.7% is earmarked for the procurement of defense equipment. In
addition, the country is in the process of addressing its limitations
with respect to combating modern threat scenarios with its existing
obsolete equipment, and has embarked on military modernization plans
over the last few years.

The country’s defense expenditure increased at a CAGR of 6.41% over
2013-2017. In the coming years, demand for defense equipment is mainly
expected to revolve around fighter and multi-role aircraft, naval
vessels, patrol ships, maritime patrol aircraft, submarines, and
surveillance equipment. The country’s defense expenditure is expected to
increase at a CAGR of 7+%.

Vietnam’s domestic defense production capabilities are relatively
underdeveloped and, as a result, the country relies on foreign OEMs to
fulfill its military requirements. Traditionally, the country has been
an importer of weapon systems as domestic military production is
small-scale and technologically inferior. Over 2012 to 2016, Russia was
the largest supplier of military hardware to Vietnam with a share of
over 88.2% of Vietnam’s imports, followed by Belarus, Ukraine, and

Vietnamese homeland security expenditure, on a cumulative basis, is
expected to be US$17.1 billion over the forecast period compared to
US$11.3 billion spent between 2013 and 2017. Efforts to police its
maritime boundaries, coupled with the need to counter human trafficking
and the illicit drug trade, are expected to drive homeland expenditure.
This is likely to increase the demand for equipment capable of enhancing
seaport and airport security, as well as border surveillance systems
such as CCTV cameras and scanners.

The country’s limited domestic defense industrial capability offers an
opportunity for a considerable number of foreign OEMs to venture into
the Vietnamese defense market. Vietnam’s defense industry is largely
dominated by Russian defense equipment suppliers, but other European and
Israeli suppliers have recently entered the defense market through
direct commercial sales of advanced defense systems. Vietnam prefers
government-to-government deals when procuring equipment, therefore,
developing government-to-government relationships is expected to open up
business opportunities over the forecast period.

Key Topics Covered:

1. Introduction

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

4. Defense Procurement Market Dynamics

5. Industry Dynamics

6. Market Entry Strategy

7. Competitive Landscape and Strategic Insights

8. Business Environment and Country Risk

9. Appendix

Companies Mentioned

  • Admiralty Shipyards
  • Damen Schelde Naval Shipbuilding (DSNS)
  • Sukhoi
  • Vietnam Shipbuilding Industry Corporation (SBIC)

For more information about this report visit https://www.researchandmarkets.com/research/kcptmg/future_of_the


Research and Markets
Laura Wood, Senior Manager
[email protected]
E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call
For GMT Office Hours Call +353-1-416-8900
Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Topics: Military
Aerospace and Defense


Category: BusinessWire, PRAsia

Print This Post