Product Synopsis
This report is the result of
SDI's extensive market and company research covering the Vietnamese defense
industry, and provides detailed analysis of both historic and forecast defense
industry values including key growth stimulators, analysis of the leading
companies in the industry, and key news.
To
Read The Complete Report with TOC :-
Introduction and Landscape
Why was the report written?
Future of the Vietnamese Defense
Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
offers the reader an insight into the market opportunities and entry strategies
adopted by foreign original equipment manufacturers (OEMs) to gain market share
in the Vietnam defense industry.
What is the current market
landscape and what is changing?
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.
What are the key drivers behind
recent market changes?
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military hardware to replace outdated and aging equipment are anticipated to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.
What makes this report unique
and essential to read?
The Future of the Vietnamese
Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts
to 2018 provides detailed analysis of the current industry size and growth
expectations from 2014 to 2018, including highlights of key growth stimulators.
It also benchmarks the industry against key global markets and provides a
detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
·
The report provides detailed
analysis of the current industry size and growth expectations from 2014 to
2018, including highlights of key growth stimulators, and also benchmarks the
industry against key global markets and provides a detailed understanding of
emerging opportunities in specific areas.
·
The report includes trend
analysis of imports and exports, together with their implications and impact on
the Vietnamese defense industry.
·
The report covers five forces
analysis to identify various power centers in the industry and how these are
expected to develop in the future.
·
The report allows readers to
identify possible ways to enter the market, together with detailed descriptions
of how existing companies have entered the market, including key contracts,
alliances, and strategic initiatives.
·
The report helps the reader to
understand the competitive landscape of the defense industry in Vietnam. It
provides an overview of key defense companies, both domestic and foreign,
together with insights such as key alliances, strategic initiatives, and a
brief financial analysis.
Key Market Issues
·
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.
Key Highlights
·
Strained relations with China:
Supported by the strong economic growth, territorial disputes in the South
China Sea have been fuelling the boost of military expenditures of countries in
ASEAN region. Vietnam shares a border with China and is a party to disputes
over islands in the South China Sea, which China and other countries such as
Taiwan, Philippines, and Japan claim ownership of. Sino-Vietnamese relations
are historically marred by invasions and conflicts and recently by claims over
islands, minerals, and maritime passages in the South China Sea. China
increased their patrol of these disputed waters and seized fishing and merchant
vessels instigating public demonstrations in Vietnam, which in turn put
pressure on the Vietnamese government to lodge its protest with the Chinese
government. The surge in strength of the Chinese Navy and the exhibition
of its aircraft carrier are also expected to drive the Vietnamese government to
increase its military expenditure and allocate more funds to military modernization
programs. The country's naval modernization program was kick started with the
procurement of six kilo class diesel submarines from Russia. Vietnam is
expected on procure frigates, patrol vessels, and other equipment to strengthen
its naval forces.
To Buy a Copy Of This Report:-
·
Human Trafficking: Vietnam has
seen a recent upsurge in human trafficking both into and out of the country. An
increase in the sex trade, including child sex and forced labor, has fuelled
the trafficking of Vietnamese adults and children to countries such as
Cambodia, China, Thailand, Hong Kong, Macau, Malaysia, Taiwan, South Korea, the
UK, and the Czech Republic. The country has also seen an illegal inflow of
children from neighboring countries for forced labor and sexual exploitation.
The Vietnamese government adopted National Action Plan 2011-2015, which aims to
protect people from falling prey to trafficking and deals with events in
Vietnam and across the Vietnamese border in cooperation with other countries
and international organizations. Vietnam has created awareness-raising projects
and provides training to women and girls in trafficking-prone areas. The
country has also passed laws which criminalize human trafficking and has
strengthened the judicial system to prosecute those convicted. Vietnam has one
of the highest conviction rates for traffickers in the world, as authorities
arrested 719 traffickers, prosecuted 453, and convicted 400 traffickers in
2012.
·
Vietnam's arms imports began to
rise in 2010, mainly due to the need to counter China's increasing naval
capabilities, and the country imported arms equipment worth US$152 million in
2011. Although imports have seen a significant decrease in 2012, the country
imported at higher levels than in the period 2008-2010. Over the forecast
period, arms imports are projected to remain at 2012 levels as the country
focuses on replacing outdated defense systems and strengthening its Navy and
Air Force. Moreover, Vietnam's domestic defense industrial base is
underdeveloped and is unable to meet the requirements of its armed forces,
which is expected to lead to a significant increase in the overall arms
supplies to the country by foreign OEMs during the forecast period.
To Read The Complete
Report with TOC :-
To Buy a Copy Of
This Report:-
Contact
M/s
Sheela
90
Sate Street, Suite 700
Albany,
NY 12207
Tel:
+1-518-618-1030
USA
– Canada Toll Free: 866-997-4948
No comments:
Post a Comment