BMI View: Given China's increased territorial assertiveness in the South China Sea, Vietnam is increasingly finding itself squeezed between the US and China.
Vietnam is involved in territorial disputes with China in the South China Sea, most notably over the Spratly and Parcel Islands. Although Beijing denies that is planning to declare an ADIZ in the South China Sea, a recent announcement by foreign minister Wang Yi that China would 'defend every inch' of its territory has no doubt left Hanoi worried.
Beijing's increasing assertiveness n has had a pronounced effect on Vietnam's defence policy over the past decade. Indeed, between 2005 and 2012 Vietnam's defence spending doubled. As with most other neighbouring countries, regional tensions have ensured that defence sales have remained buoyant despite various economic challenges. Over the past few months, Vietnam has taken delivery of a number of pieces of defence equipment from other countries, and has sought to increase ties with the US.
Given this increasing appetite for new defence equipment, as a result of rising tensions with China in the South China Sea, Vietnam has become a key market for a range of countries. While Moscow has always been Hanoi's primary defence partner, due to the latter's reliance on Soviet-era equipment, a number of European defence companies are also expanding ties with the country. Airbus Helicopter, French naval company DCNS and European missile-maker MBDA are all reportedly looking to win contracts in Hanoi.
Defence ties with the US have continued to strengthen since the ADIZ declaration in November 2013. Following US Secretary of State John Kerry's visit to Vietnam in December 2013 a range of deals have been announced between the two countries. This includes US$32.5mn in assistance for maritime law enforcement in South East Asia, US$18mn of which is earmarked for Vietnam. In March 2014 Wendy Sherman, the Under-Secretary Of State For Political Affairs, followed Kerry's visit to...
The Vietnam Defence & Security Report features Business Monitor International (BMI)'s independent forecasts for national and international security, the defence industry, military expenditure, employment in arms production, and arms imports and exports, as well as examining industry trends and prospects, national and multinational arms producers and the regulatory environment.
BMI's Vietnam Defence & Security Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Vietnamese defence and security industry.
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Global and Regional Political Outlooks
A strategic overview of the world's major political risks, identifying countries facing leadership successions and nations at risk of upheaval, inter-state conflict or separatism and insurgencies, plus a summary of the world's 'wild card' low-probability high-impact risks.
Snapshot evaluation of the major issues affecting the defence and security sectors, economy and politics, with issues subdivided into 'Strengths', 'Weaknesses', 'Opportunities' and 'Threats'.
Political Risk Assessment
Drawing on BMI's heritage of more than 25 years of Country Risk analysis, this comprehensively evaluates the key risks to domestic politics and foreign relations, focusing on issues most likely to affect either domestic security or the defence sector.
Security Risk Analysis
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Armed Forces Spending/Expenditure
The reports contain a detailed breakdown of areas of expenditure by the armed forces, these include spending on international deployments, WMDs and missile defence systems as well as individual breakdowns of the cost-per-soldier.
Domestic Security Overview
The domestic security overview lists the various potential internal security threats facing a country, ranging from internal security issues such as terrorism, cyber terrorism, crime and drugs, to external security issues including general defence procedures and potential threats from specific countries.
BMI Industry Forecast Scenario
Historic data series and forecasts to end-2018 for key industry indicators supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
Budgets & Expenditure: Defence expenditure (local currency and US$bn); defence expenditure (% of total budget); defence expenditure (% of GDP); defence expenditure per capita, US$; defence budget (local currency and US$bn).
Employment: Employment in arms production (`000s); employment in arms production (% of labour force).
Macroeconomic: BMI's forecasts and analysis of all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Domestic Security Overview
The reports also provide a regional overview which details specific issues and flashpoints affecting , along with potential risks in the coming year.