Vietnam seeks to boost domestic defence industry as it hosts arms fair

By Francesco Guarascio and Khanh Vu

HANOI (Reuters) – Vietnam will showcase locally made weapons at an international arms fair in Hanoi on Thursday, as it seeks to boost its domestic industry and possibly export military equipment.

Among the nearly 250 exhibitors will be top defence companies, including from the United States, Europe, Turkey and countries at war with each other, such as Israel, Iran, Russia and Ukraine.

The Southeast Asian nation is a major importer of weapons, especially from Russia, having invested for years in its defence capabilities in an unstable region where it has clashed with China over boundaries in the South China Sea.

But recently it has also bolstered its domestic defence industry and promoting exports of military products is now a priority, defence ministry officials have repeatedly said.

State-owned defence firm Viettel and other local companies will showcase missile defence systems, drones, air defence radars, armoured vehicles and artillery, according to defence ministry media.

Some of these weapons will be displayed for the first time, said Nguyen The Phuong, an expert on Vietnam security at Australia’s University of New South Wales.

He noted a key strategy to strengthen the local industry had been the signing of deals with foreign arms exporters to have some of their components produced in Vietnam.

Talks with South Korean companies were underway for possible new deals under those conditions, especially for artillery and aviation, he said.

Similar talks had also been held with companies from other countries, including the Czech Republic, officials said.

RIVALS’ GEAR ON DISPLAY

At the expo, Iran’s defence ministry will have an entire pavilion, not far from the booths of Israel’s defence firms Israel Aerospace Industries and Rafael Advanced Defense Systems.

The fair will also host a dozen booths of Russian firms and one for Ukraine’s Motor Sich, an aircraft engine manufacturer.

A dozen Turkish defence companies, including Aselsan (IS:), Turkish Aerospace Industries and Roketsan, are among listed participants, making Turkey’s one of the largest delegations.

China’s Norinco will be one of two Chinese exhibitors, in a first for a Vietnamese defence fair.

U.S. defence giants Lockheed Martin (NYSE:), Boeing (NYSE:) and Textron (NYSE:) Aviation Defense will also have their booths at the fair.

They have all been involved in talks with Vietnamese authorities for the sale of helicopters. Lockheed is also discussing a possible deal on C-130 Hercules military transport planes, sources had told Reuters.

Brazil’s Embraer said it will exhibit its C-390 Millennium plane – a rival to the C-130.

Top European defence firms will also attend, including aerospace giant Airbus, Britain’s BAE Systems (LON:), Germany’s Rheinmetall (ETR:), Italy’s Leonardo and France’s Thales (EPA:) Group.