The Vietnamese defense expenditure is expected to increasing at a CAGR of over 9% in the next five years, according to a new study on ASDReports
Report description overview:
The new report now available on ASDReports, provides readers with a detailed analysis of both historic and forecast Vietnamese defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies and key news. Gain information about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period.
The difference:
- Gain detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins and financial analysis wherever available. This will provide you with a total competitive landscape of the sector.
- Provides user confidence to make the correct business decisions based on a detailed analysis of the Vietnamese defense industry market trends for the coming five years.
- Understand the various military requirements which are expected to generate revenues during the forecast period.
Report Highlight:
Vietnamese homeland security expenditure, on a cumulative basis, is expected to be almost US$10 billion over the forecast period compared to US$5 billion spent between 2010 and 2014. Efforts to counter human trafficking and the illicit drug trade will 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 technology 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 European suppliers have recently entered the defense market through the direct commercial sale of advanced defense systems. Moreover, Vietnam prefers government to government deals when procuring armory. Therefore, developing government to government relationships are expected to open up business opportunities over the forecast period.
Vietnam’s defense budget is veiled in secrecy and the government does not give any specifics about the defense budget breakdown or the amount spent on procurement. This lack of transparency within the government budget allocation and procurement plans discourages investors from entering the country’s defense market. Furthermore, wide-spread corruption and unethical workings across all bureaucratic levels act as a major roadblock for foreign defense players.