Today: February 11, 2016, 8:17 pm

Vietnam defence market: Expenditure to reach $4.6 billion by 2018
Future of the Vietnamese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 - a new market research report on 2014-04-24 20:23:04
With booming economy and maritime trade, Vietnam finds itself in the middle of an Asian arms race. A looming Chinese threat and the need to replace obsolete military equipment are expected to drive the country´s defense expenditure over the forecast period. Vietnam´s defense budget is valued at US$3.1 billion in 2013, and is expected to grow at a faster pace over the forecast period than during the review period. Vietnam´s military expenditure is expected to grow at a CAGR of 7.84% over the forecast period to reach US$4.6 billion by 2018, compared to the registered growth rate of 6.26% during the review period.The Vietnamese government is estimated to increase its allocation for capital expenditure over the forecast period to an average of 32.5% of total defense expenditure. The country is expected to procure military equipment to boost its naval strength and maritime security in order to counter the threat from the growing Chinese naval strength in the South China Sea. In addition, Vietnam is also expected to procure military equipment such as aircraft, missiles and armored vehicles as part of its modernization program. Foreign companies may gain from the Vietnamese government´s efforts to open its defense market and look beyond its traditional arms supplier, Russia.Strained relationship with China and military modernization are expected to drive military spending Vietnam is expected to spend US$6.4 billion on the acquisition of weapons and defense systems during the forecast period. Factors such as disputed territorial claims in the South China Sea, Chinese naval build-up, and the acquisition of modern military hardware to replace outdated and aging equipment are anticipated to drive the country´s military expenditure.In March 2011, the Vietnamese government passed legislation that prohibits selling stakes of state-owned defense companies to the private sector. The legislation further stipulates that the state will hold 100% of the charter capital in enterprises which involve national defense, as well as security and military-held commercial enterprises. This legislation prevents private participation and thwarts any foreign direct investment into the country´s defense sector.Vietnam released its third defense whitepaper in 2009 which revealed the country´s defense expenditure for the first time during 2004-2008. This was seen by many as a step towards building confidence with both its neighbors and countries in the west, which is in line with its foreign policy of building cordial relations with other countries. However, the whitepaper does not give any specifics about the budget break-down or the amount spent on procurement. This lack of transparency within the government budget allocation and procurement process may discourage investors from entering the country´s defense market.

Click for report details: ..

Browse all Defence Market Research Reports ..

Browse all Defence Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Press Information

Published by
Mike King
London: +44 (0) 203 086 8600

# 649 Words
Related Articles
More From Finance
Arizona Real Estate Stats 2015
COMMENTARY by Tom Ruff of The Information Market Permission is granted only to ARMLS® Subscribers for reproduction with attribution [..] Announces New Trader Counsel Services
LONDON - Jan. 25, 2016 - British financial news source has announced that it will now be offering the [..] Offers Free Advice For Getting Completely [..]
Everyone has some degree of debt to deal with. Some folks have a lot of it, and they need to [..]
Offshore Processing slashes credit card processing costs [..]
High risk and high volume merchants engaged in unconventional trades, such as Adult Content, Adult Goods, Online Casinos, Online [..]
Real-Estate-Yogi Offers Free Advice to Returning Veterans [..]
Veterans of the United States are returning from active duty and need places to live. It is up to lenders [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.