Market Research Report
Future of the Vietnamese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023
|Published by||Strategic Defence Intelligence||Product code||654971|
|Published||Content info||80 Pages
|Future of the Vietnamese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023|
|Published: June 11, 2018||Content info: 80 Pages||
The growing strength of the Chinese Navy and its assertiveness with regards to territorial claims in the South China Sea has compelled the Vietnamese Government to enhance its military capabilities. In addition, the country is in the process of addressing its limitations with respect to combating modern threat scenarios with its existing obsolete equipment, and has embarked on military modernization plans over the last few years. This has driven Vietnam's defense expenditure throughout 2014-2018 and is expected to do so over. The Vietnamese Government allocated US$5.4 billion towards military expenditure in 2018, of which 32.2% is earmarked for the procurement of defense equipment. The country's defense expenditure increased at a CAGR of 6.14% over 2014-2018.
The country's economy is projected to grow at a CAGR of 8.99% over the forecast period, and defense expenditure as a percentage of GDP is expected to average 2.1%. However, slow population growth is projected to increase per capita defense expenditure to US$76.9 by 2023.
Vietnamese homeland security expenditure, on a cumulative basis, is expected to be US$20.5 billion over the forecast period. Efforts to police its maritime boundaries, coupled with the need to counter human trafficking and the illicit drug trade are anticipated to 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 cameras 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 other European and Israeli suppliers have recently entered the defense market through direct commercial sale of advanced defense systems. Moreover, Vietnam prefers government-to-government deals when procuring armory; therefore, developing government-to-government relationships is expected to open up business opportunities over the forecast period.
"Future of the Vietnamese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023", provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
Key Inclusions of the report are -
Market opportunity and attractiveness: detailed analysis of the current industry size and growth expectations during 2019-2023, including highlights of the key growth stimulators
Procurement dynamics: trend analysis of imports and exports, together with their implications and impact on the Vietnamese defense industry
Industry structure: five forces analysis to identify various power centers in the industry and how these are expected to develop in the future
Market entry strategy: analysis of 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
Competitive landscape and strategic insights: analysis of the competitive landscape of the defense industry in Vietnam.
Business environment and country risk: a range of drivers at country level, assessing business environment and country risk.
Companies Mentioned: Vietnam Shipbuilding Industry Corporation (SBIC), Sukhoi JSC, Admiralty Shipyards and Damen Schelde Naval Shipbuilding (DSNS)
Conflicts in the South China Sea and the need to replace obsolete military equipment have driven Vietnam's defense expenditure throughout 2014-2018 and are expected to do so over the forecast period. Vietnam's defense budget grew from US$4.3 billion in 2014 to US$5.4 billion in 2018, at a CAGR 6.14%.
The Vietnamese Government is expected to maintain a steady allocation of an average of 32.3% of defense budget for capital expenditure over the forecast period, which is same as average of 32.3% between 2014 and 2018.
The country is expected to procure military equipment to boost its naval strength and maritime security in order to counter the threat from China's growing naval strength in the South China Sea. In addition, Vietnam intends to procure military equipment such as corvettes, patrol vessels, frigates, submarines, aircraft, missiles, and armored vehicles as part of its modernization program.
Reasons to buy
This report will give the user confidence to make the correct business decisions based on a detailed analysis of Vietnamese defense industry market trends for the coming five years
The market opportunity section will inform the user 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
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 the user with a total competitive landscape of the sector
A deep qualitative analysis of Vietnamese defense industry covering sections including demand drivers, Porter's Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts