DUBLIN--(BUSINESS WIRE)--The "Future of the Vietnam Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to Research and Markets' offering.
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 Israel.
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)
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