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BMI View: Growth in Vietnam's defence expenditure over the coming years is all but assured owing to
increasing tension in the South China Sea. The China challenge in these waters has and will continue to
necessitate investment into strengthening the country's deterrence capabilities and its overall asymmetrical
defence strategy - especially in terms of its naval and air forces. The domestic industry remains underdeveloped
and incapable of providing for the technologically advanced requirements of its armed forces,
meaning the country will remain heavily dependent on foreign defence companies for supply in the coming
years. Further, a growing but still limited budget will restrain the country from making large-scale highend
purchases recently made available to it with the lifting of the decades-old US arms embargo.
? On July 21 2016, a fleet of six Chinese fishing vessels were discovered operating within Vietnam's
territorial waters and consequently stopped and removed from the area by Vietnamese authorities,
reported the Border Defense Command of Quang Binh Province, Vietnam.
? On July 21 2016, Cuba and Vietnam discussed the potential improvement to defence cooperation ties,
working towards the signing of a cooperation plan in the near future.
? On July 18 2015, local media sources reported that Vietnam had received its first Israeli-made SPYDER
advanced surface-to-air missile systems.
? On July 12 2016, the Permanent Court of Arbitration in The Hague, a tribunal under the United Nations
Convention on the Law of the Sea (UNCLOS), ruled in favour of the Philippines in its case against China
and its claim to historic rights within most of the South China Sea. Beijing has dismissed the validity of