Hyderabad, Andhra Pradesh -- (SBWIRE) -- 06/02/2012 -- Product Synopsis: This report is the result of ReportReserve’s extensive market and company research covering the Vietnamese defense industry. It 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..
Introduction and Landscape
Why was the report written?
The Vietnamese Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Vietnamese defense industry.
What is the current market landscape and what is changing?
Vietnam is one of the world’s fastest-growing defense markets and is expected to spend US$16 billion on its armed forces during the forecast period. As a result of years of underfunding in the Vietnamese defense budget, the country’s armed forces are expected to undergo an extensive modernization program. This, coupled with economic recovery, is expected to increase Vietnam’s defense expenditure by 2016.
What are the key drivers behind recent market changes?
Vietnamese defense expenditure was primarily driven by factors such as modernization plans, territorial disputes with China and China’s growing military capability. Vietnam is expected to spend US$6 billion on the acquisition of weapons systems during the forecast period. Factors such as territorial claims in the South China Sea, Chinese naval build-up and the acquisition of modern military hardware systems to replace outdated and aging equipment are anticipated to drive the country’s military spending in the forecast period.
What makes this report unique and essential to read?
The Vietnamese Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016 provides detailed analysis of the current industry size and growth expectations from 2011 to 2016, 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 2011 to 2016, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with its 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 involving national defense and 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 neighbours and countries in the west, which is in line with its foreign policy of building cordial relations with other countries.
Vietnam’s military industrial base is still in a nascent stage of development. The country’s defense companies are predominantly government-owned and are operated by the military, which has prevented foreign investment into the defense sector and limited technological innovation. As a result, the country’s domestic companies are unable to develop and manufacture technologically advanced defense systems.
Key Highlights
Vietnamese defense expenditure registered a CAGR of 12.25% during the review period and is estimated at US$3 billion in 2012. It is expected to grow at a CAGR of 12.52% during the forecast period to reach an estimated US$5 billion in 2016. Overall, the country is expected to spend an estimated US$18 billion on its armed forces during the forecast period, of which approximately US$6 billion will be allocated for capital expenditure.
Vietnamese homeland security expenditure registered a CAGR of 21.89% during the review period and is expected to grow at a CAGR of 20.04% during the forecast period to reach an estimated US$3 billion in 2016. With the country sharing borders with several other countries, and enjoying a strategic location near the maritime trade route, the chances of illicit drug trafficking and smuggling are heightened.
Despite relying on foreign arms sources, defense imports to Vietnam registered a steep decline from 2008-2009. Arms imports began to rise in 2010, mainly due to the need to counter China’s increasing naval capabilities. Arms imports are projected to remain at 2011 levels during the forecast period as the country focuses on replacing outdated defense systems and strengthening its Navy and Air Force."
For further information visit http://www.reportreserve.com/report/the-vietnamese-defense-industry-market-opportunities-and-entry-strategies-analyses-and-forecasts-to-2016-report-540930