Market Overview

Vietnamese Defense Industry Report 2018 - Market Attractiveness, Competitive Landscape and Forecasts to 2023 -


The "Future
of the Vietnamese Defense Industry - Market Attractiveness, Competitive
Landscape and Forecasts to 2023"
report has been added to's

The growing strength of the Chinese Navy and its assertiveness with
regards to territorial claims in the South China Sea has compelled the
Vietnamese Government to enhance its military capabilities. 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.

This has driven Vietnam's defense expenditure throughout 2014-2018 and
is expected to do so over. The Vietnamese Government allocated US$5.4
billion towards military expenditure in 2018, of which 32.2% is
earmarked for the procurement of defense equipment. The country's
defense expenditure increased at a CAGR of 6.14% over 2014-2018.

The country's economy is projected to grow at a CAGR of 8.99% over the
forecast period, and defense expenditure as a percentage of GDP is
expected to average 2.1%. However, slow population growth is projected
to increase per capita defense expenditure to US$76.9 by 2023.

Vietnamese homeland security expenditure, on a cumulative basis, is
expected to be US$20.5 billion over the forecast period. Efforts to
police its maritime boundaries, coupled with the need to counter human
trafficking and the illicit drug trade are anticipated 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 sale of advanced defense systems. Moreover, Vietnam
prefers government-to-government deals when procuring armory; 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. Competitive Landscape and Strategic Insights

7. Business Environment and Country Risk

8. Appendix

Companies Mentioned

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

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