Despite global headwinds, Vietnam’s economy will continue to expand on the back of robust domestic demand and export-oriented manufacturing. The dynamic country has developed a competitive advantage in sophisticated value-added manufacturing sectors such as electronics and will remain one of the world’s most attractive emerging markets as foreign direct investment (FDI) and rapid growth in manufacturing exports and will fuel rapid growth.
Vietnam’s mid-to-long term fundamentals remain sound with continued FDI likely to support a gross domestic product (GDP) growth rate in excess of 6% over the coming years, while the country’s single-party system underpins national stability. Recent and continuing economic reforms are also beginning to bear fruit, ensuring that it remains well-placed to adapt to global shocks.
The country is rapidly modernising its armed forces, the Vietnam People’s Army (VPA), to safeguard its vast economic and sovereign interests, which comprise a 3,300 km coastline and an exclusive economic zone (EEZ) that is over 400,000 km2 in size. To complement the VPA, the country is also strengthening its Vietnam People’s Public Security (the security and police) and Vietnam People’s Security Forces.
The United States had lifted its long-standing military arms embargo on Vietnam and Japan has also placed maritime security co-operation at the forefront of its growing engagements with Vietnam in response to growing territorial concerns.
With almost half a million active personnel, and another five million or so in reserve, the Vietnam defense and security market has immense potential that all industry players cannot afford to miss.
As discussed in many open international defence and security discussions and research literature such as Jane’s Defence, the Army Recognition, Strategic Defence Intelligence, the Diplomat, and many other established media, the Vietnamese Military and Security Services are upgrading and modernizing their forces and capabilities.