Defence market in Vietnam

Vietnam is one of Southeast Asia's fastest-modernizing defence markets, driven by maritime security needs, territorial concerns in the South China Sea and ongoing military modernization. The country is also looking to diversify its defence suppliers beyond its traditional reliance on Russia.

According to the Stockholm International Peace Research Institute (SIPRI), Vietnam has made one of the largest increases in military spending in Southeast Asia. In 2024, Vietnam allocated about $8.5 billion to defence, with plans to exceed $10 billion by 2029. The Government of Vietnam is investing in naval and aerospace capabilities, intelligence, surveillance and reconnaissance (ISR), cybersecurity, and its domestic defence industry. It is also seeking technology transfer and industrial cooperation with foreign partners.

• Maritime security and domain awareness
• Aerospace and defence electronics
• Cybersecurity and digital defence
• Defence industry cooperation and technology transfer

• Regulatory and procurement complexity
• Technology transfer expectations
• Strong competition
• Export controls

Vietnam's defence sector remains largely state-directed. The Ministry of National Defence and state-owned defence enterprises play central roles in procurement, manufacturing and technology development. Vietnam is diversifying its suppliers and encouraging cooperation with partners that can support military modernization and the development of its domestic defence industry.

Vietnam is also investing in domestic defence production to build a modern, more self-reliant defence industry. Its goal is to produce more advanced military systems while better integrating civilian and defence technologies.

Vietnam's continued military modernization, efforts to diversify suppliers and government support for domestic capabilities make it an attractive defence market for Canadian companies. Opportunities include:

• maritime security
• aerospace
• cybersecurity
• ISR
• defence electronics 
• defence industry cooperation

For more information on defence and security sector in the Vietnamese market, please contact hanoitd@international.gc.ca.