|
|
 |
|
Viewing report
|
|
|
|
Vietnam Defence and Security Report Q4 2011
Business Monitor International, Oct 2011, Pages: 74
China’s assertion of indisputable control over the South China Sea continues to be the biggest defence and security issue facing Vietnam. Nevertheless, there are some signs that tensions may be easing, including positive statement by the Chinese Ambassador to Vietnam in August 2011 and a five-day visit to Hanoi by China’s State Councillor Dai Bingguo in September, where a negotiated solution to disputes in the Sea were emphasised.
On land, Vietnam enjoys cordial ties along its borders with Cambodia – reinforced in a recent high-level meeting in Phnom Penh – and with China where trade now dominates the scene. Elsewhere, Laos presents almost no threat to Vietnam.
We continue to expect bilateral relations with the United States to continue to deepen. The relationship was highlighted most recently by US Under Secretary of Commerce for International Trade, Francisco Sanchez, as keynote speaker at a Vietnamese National Day event in Washington. The United States is now Vietnam’s largest export market and one of its biggest foreign direct investors. US exports to Vietnam have seen growth of 20-25% annually.
Given the country’s defence and security profile, much procurement focuses on potential needs in the South China Sea. In July 2011, Russian state defence export company Rosoboronexport confirmed that Vietnam had signed a contract for six Kilo-class Project 636 submarines optimised for shallow water operations. Moscow will also provide assistance with the construction of a submarine base and deliver eight Su-30MK2V combat aircraft.
In June 2011, in an article in Vietnam’s state newspaper, Nhan Dan, Hanoi indicated that it was keen to acquire the world’s fastest anti-ship missile, the Indo-Russian BrahMos. The missile is four times as fast as a US-made Tomahawk missile. BrahMos procurement requires joint approval from India and Russia but improving relations between the three parties suggest this will pose no problem. The Vietnamese government has given permission for Indian navy ships to anchor at Nha Trang, which has been off-limits to foreign navies since 2003. Vietnam will take delivery of six Canadian-built DHC-6 Twin Otter amphibian aircraft between 2012 and 2014.
Inflationary pressures in Vietnam have proven more stubborn than we have previously anticipated. Nevertheless, we continue to expect those pressures to ease as we head into 2012.
Business Monitor International's Vietam Defence and Security Report provides industry professionals and strategists, corporate analysts, defence and security associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Vietam's defence and security industry.
|
|
|
|
