South China Sea disputes drive Vietnam to modernise military capabilities: report

Vietnam’s defence budget will increase to an estimated $10.2b by 2029, GlobaData reported.

South China Sea disputes and China’s growing assertiveness has driven Vietnam to modernise its military capabilities, GlobalData reported. 

Its modernisation initiatives will likely increase its defence budget to an estimated $10.2b by 2029 with a compounded annual growth rate of 5.6%.

“Ever since the Vietnam-China war of 1979, the relationship between the two countries has always remained strained owing to China’s continuous intrusions in territories of the South China Sea that Vietnam perceives as its own and considers it a threat to its sovereignty,” Akash Pratim Debbarma, Aerospace & Defense Analyst at GlobalData said.

“Even though Vietnam and China agreed to step up cooperation on security matters in December last year, it is unlikely to have any significant improvement in their relationship in the near-term.”

GlobalData estimated that Vietnam is expected to cumulatively allocate $689m between 2023 and 2028 for procuring various categories of artillery systems.

Moreover, the report noted that if the planned procurement of 12 units of Su-57 from Russia materializes in the coming years, it will drastically improve the country’s aerial combat capabilities. 

Vietnam operates a fleet of Su-27 and Su-30 multi-role aircraft. As the fleet of Su-27s approaches retirement, the inclusion of these Su-57s will surely fulfill the country’s desire to modernize its Air Force inventory.