Vietnam’s push to modernise its military and reduce dependence on Russian arms has opened the door to Western defence firms, but experts have told Breaking Defense that unclear procurement processes, political risks, and capacity gaps in logistics and maintenance could complicate their path into the market
Carlyle Thayer, an emeritus professor at the University of New South Wales’ Australian Defence Force Academy told the publication:
- Vietnam’s reliance on Russia is now untenable: “Procurement will remain on hold pending a peace settlement.”
- New defense partnerships are emerging due to the US–Vietnam Comprehensive Strategic Partnership (2023), which he sees as a turning point.
- Vietnam lacks the infrastructure to maintain Western platforms.
- Western systems are expensive, and Western firms rarely offer the flexible financing Russia did.
- Mixing Russian and Western systems creates interoperability risks and technical friction.
Natasha Pheiffer (BAE Systems, Asia) noted:
- “They’ve not been able to articulate their own requirements.”
- Vietnam lacks a fixed procurement framework, complicating engagement: “We’re trying to find out more about their procurement processes, and I think they’re trying to find it themselves.”
- BAE is exploring what Vietnam wants, but uncertainty slows decision-making.
An unnamed Western executive also mentioned that:
- Formal quotation requests have arrived via informal channels like WhatsApp.
- Procurement lacks transparency, with no publication of winning bids or requirements.
That is to say, Vietnam’s defense market is opening—but it’s fragmented, unstructured, and politically sensitive. Western firms need to adapt not only to Vietnam’s emerging technical needs but also to a procurement ecosystem that is still learning how to engage with foreign partners.
See also: How to Start a Business in Vietnam