Expression of Interest for Trade Mission

The Australian Industry Group in collaboration with Austrade, Vietnam is organising a Defence and Security Delegation to Vietnam from 18-22 March 2024.  

This activity received grant funding from the Department of Foreign Affairs and Trade under the Australia-Vietnam Enhanced Economic Engagement Grant Program.

ABOUT THE TRADE MISSION

Vietnam has recently focused on military modernisation, with maritime security a top priority. Defence spending has increased substantially, from $841 million in 2003 to $5.5 billion in 2018, representing nearly a 7-fold increase. In 2022, defence expenditure reached around $5.8 billion, a 9.4% increase over 2021, and is forecast to grow to approximately $8.5 billion by 2027.

In December 2022, the Vietnamese Ministry of National Defence held its first international defence expo in Hanoi. Team Defence Australia and Austrade led an Australian Defence delegation of 12 Australian companies. Building on relationships developed and insights gained at the expo, Austrade identified land defence capabilities as an area of growing opportunity where Australian industry can benefit from further engagement and trade exploration.

The upcoming Vietnam Defence & Security Mission will provide a platform for dialogue, explore export opportunities, and promote Australia's expertise and capabilities in dual use technologies, including defence, safety and security products and services. The event presents a valuable opportunity to engage directly with relevant Vietnamese defence stakeholders and gain a first-hand understanding of the significant opportunities available for Australian companies.

The 5-day program in Hanoi and Ho Chi Minh city will comprise of various activities, including high-level land defence industry roundtable, security seminar, business-matching meetings, and site visits. Delegates will have the opportunity to showcase their capabilities to potential Vietnamese customers and partners and network with key local defence stakeholders.

KEY REASONS TO PARTICIPATE

• Leverage existing Australian government focus on expanding defence engagement with Vietnam.
• Develop an understanding of Vietnam's defence strategies, potential projects, and commercial landscape.
• Directly interact with Vietnamese defence and security stakeholders and potential partners through targeted roundtable/seminars, business meetings and networking functions.
• Build market awareness as part of a showcase of Australia’s broader defence and security capabilities.
• Receive on-the-ground support from Ai Group, Austrade, and their partners, offering export advice on successfully entering the Vietnamese market.

Important information
Dates:   18-22 March 2024	Locations:   Vietnam: Hanoi, Ho Chi Minh city	Apply by:  30 November 2023

WHO SHOULD PARTICIPATE?

Australian businesses in defence:

• Armoured/military vehicles and systems
• Combat systems and security
• Robotics, automated and unmanned systems
• Military Command & Control (C2) & Intelligence
• Country, force, and solider protection
• Ballistics protection
• Defence MRO and upgrades
• Other services and disruptive technologies for land defence
• Education and training
• Airports, buildings and major infrastructure security and surveillance
• Chemical, biological, radiological, nuclear, explosive (CBRNE) detection and protection
• Crowd, riot, and crisis management
• Police and law enforcement equipment and technology

MISSION PROGRAM

The below-proposed program has been designed to maximise your visit to Vietnam and is subject to change in alignment with specific participants' expertise and areas of interest. Upon receiving your Expression of Interests (EOIs), Ai Group and Austrade will try to identify and secure the most relevant stakeholders for business meetings and business matching activities.

Time	Location	Activity
Day 1
09:00 -10:00	Welcome and program briefing for Australian delegates
10:30 – 12.00	Meeting with Vietnam Ministry of National Defence
12:00 – 13:00	Lunch time
14:00 – 15:00	Meeting with Vietnam Ministry of Public Security
18:00 – 20:00	Welcome Reception and networking
Day 2
08:30 – 12:00	Defence Industry roundtable with Ministry of National Defence and its subsidiaries.
12:00 – 13:30	Networking lunch
13:30 – 17:00	Business matching
Day 3
09:00 – 12:00	Site visits: Vietnam People's Army Tanks and Armoured Vehicles MRO facility
12:00 – 14:00	Networking Lunch
Afternoon	Travel to Ho Chi Minh City
HO CHI MINH CITY PROGRAM
Day 4
09:00 – 12:00	Security and Public Safety Seminar
12:00 – 13:00	Networking lunch
13:00 – 15:00	Business meetings
Day 5
08:30 – 12:00	Site visit/Business meetings
	End of program

MARKET INSIGHT

Vietnam has been active in a military modernisation program with maritime security among the top priorities. In 2022, the country's defence budget saw a growth of 9.4% compared to 2021, reaching approximately $5.8 billion. Projections suggest a significant increase to around $8.5 billion by 2027.

The highest categories of defence imports include naval vessels (46.8%), missiles (17.3%), and armoured vehicles (10.3%). Other significant categories comprise air defence systems and aircraft.

The Vietnamese Government has consistently allocated an average of 21.2% of its defence budget towards acquisition expenditure. This includes procuring new equipment and upgrading programs for existing assets.

In November 2019, Vietnam publicised a white paper outlining its national defence and military strategy for the subsequent decade. The document emphasises a self-defensive and peaceful approach to national defence. Key strategies incorporated in the white paper include the 'three nos': no foreign military bases or use of territory for military activities, no military alliances, no alignment with one nation against another, nor threats to use force in any international relations. Vietnam currently maintains an active troop size of approximately 500,000, complemented by a reserve force of around 5 million.

Historically, Russia has been the primary defence supplier to Vietnam, accounting for 66.3% of the country's defence imports. Israel and Belarus follow, contributing 19.1% and 4.9% respectively. However, recent trends show Vietnam's growing inclination to diversify its supplier portfolio.

Vietnam has shown openness to a broad range of advanced equipment from some of the world's top defence manufacturers. However, budgetary constraints may limit the procurement of state-of-the-art systems, such as the Lockheed Martin F16, which may exceed Vietnam's financial capacity. Consequently, Vietnam has also shown interest in less expensive options, including surplus equipment.

The country has made a number of recent acquisitions, including 18 US-made Metal Shark patrol boats and ScanEagle UAVs from Boeing's subsidiary. Between 2013 and 2018, Vietnam received bilateral security assistance from the US under the Foreign Military Financing (FMF) program. This facilitated the first major defence transfer between the US and Vietnam, involving a former U.S. Coast Guard Cutter under the Excess Defence Article program. This vessel is currently the largest in Vietnam's military inventory.

IMPORTANT INFORMATION

If you are considering this mission, Austrade recommends that you consult 'Smartraveller', the Australian government's travel advisory service, available at www.smartraveller.gov.au . Travel advice is updated regularly on this site. Please note that in Australia and overseas markets, Austrade will only work with clients who maintain appropriate business ethics and demonstrate a commitment to legal obligations, including anti-bribery laws. Review further information on anti-bribery at http://www.austrade.gov.au/Exporters/About-exporting/Legal-issues/Bribery-of-foreign-public-officals .

PARTICIPATION COST

All costs within the Official Program Agenda will be covered by the Trade Mission Program.  

All costs outside the Program Agenda are the responsibility of the Delegate. These costs include but are not limited to:

• International flights to and from the Program destination and domestic/international required to participate in the Program;
• Airport transfers (Unless specifically stated in the Program Agenda);
• Accommodation;
• Meals (Unless at events included as part of the Program Agenda);
• Taxes, tips, visas, transport, tour etc.
• Comprehensive travel insurance.

Please read and accept the following conditions before submitting your expression of interest to participate in the Australian Industry Group (Ai Group) Defence & Security Delegation to Vietnam (the Delegation). Submissions of an expression of interest will be taken as acceptance and agreement of these Terms & Conditions.

REGISTER YOUR INTEREST

For further information contact:

Shirley Ng 

National Manager, International Competitiveness  

Australian Industry Group 

51 Walker Street North Sydney NSW 2060 

T: +612 94665533 

E: shirley.ng@aigroup.com.au