February 10, 2012
By Tim Hepher and Peter Apps, Reuters
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| Chinese navy cadets march in formation past Tiananmen Square during a parade in this file photo. Beijing's assertiveness in the South China Sea could soon be replicated in neighbouring waters, a Japanese government-backed report said Friday, amid rising regional nervousness about China's intentions. (Photograph by: Jason Lee, Reuters) |
SINGAPORE/LONDON - Vietnam is opening up to Western defence firms as tensions in the South China Sea trigger subdued yet growing warnings of a regional arms race, defence executives and security analysts said on Friday.
The Communist-ruled country is one of several Southeast Asian nations seeking to expand surveillance and maritime patrol capabilities, sparking fierce competition for regional deals estimated to be worth up to several hundred million dollars.
"Vietnam is opening to Western suppliers, which was not the case two or three years ago," said Marie-Laure Bourgeois, vice-president for South and Southeast Asia at France's Thales , Europe's largest defence electronics supplier.
"There has been a revival of tensions recently in the South China Sea and this is increasing demand for surveillance systems. Countries in the region want to ensure they have enough awareness of what is happening at sea and in the air."
Vietnam is locked in a complex set of territorial disputes with China and four other parties - Brunei, Malaysia, the Philippines and Taiwan - over waters giving access to untapped oil and gas reserves and valuable fishing grounds.
China's claims, the broadest, cover all of the Spratly and Paracel islands and most of the South China Sea.
Concern over an accidental confrontation or even hostilities spiked in May when Vietnam and China exchanged fresh accusations of sovereignty violations. The issue has come off the boil but the region is bustling with deals from sonars to submarines.
"(Southeast Asian) states are boosting their military capabilities because they can afford to and as part of a hedging strategy both against China and each other," said Nigel Inkster, former deputy chief of Britain's Secret Intelligence Service, known as MI6.
"Though Southeast Asians don't like to hear it, there is an arms race going on in the region," said Inkster, now head of trans-national threats and political risk at London's International Institute for Strategic Studies.
PURCHASING TALKS
Half the globe's oil tanker traffic passes through the disputed area, underpinning demand for surveillance systems expected to be on display at next week's Singapore Air Show.
Vietnam has traditionally bought Russian hardware including a recent purchase of six Kilo-class submarines but is emerging as a market for other suppliers "as insurance against China", said James Hardy, Asia-Pacific Editor for Jane's Defence Weekly.
Israel is seen as front-runner to win the Vietnam contract Thales was bidding for, but other possible deals lie ahead.
"There are discussions with the Vietnam authorities which are no longer just buying Russian equipment. We have participated in discussions on radar and are still in some discussions," Bourgeois said on the eve of the Feb. 14-19 air show.
Israel and Vietnam have stepped up bilateral contacts of late, but any defence deals are months away, a source at Israel Aerospace Industries told Reuters, when asked about the comments.
On Thursday, the Israeli company announced a $150 million contract to supply radar to an unidentified Asian country.
Assistant U.S. Secretary of State Kurt Campbell said in Hanoi last week Vietnam needed to improve its human rights record before moving ahead with closer military ties.
"Growing tensions coupled with the wealth of Southeast Asia make it a very attractive market for defence companies, especially where the U.S. precludes itself," said defence consultant Alexandra Ashbourne-Walmsley.
In late December, China's Vice President Xi Jinping, widely expected to take over as top leader from late 2012, called for better relations with Vietnam, saying the two countries should properly handle their differences and do more to build trust.
Still, Western diplomats and defence executives said ahead of the air show that uncertainty and overlapping disputes had pushed up defence budgets and buying interest across the region.
The lessons of Iran's threat to close the Hormuz Strait are also not lost on a region hosting similar trade choke points.
"Vietnam would like to improve its links with the USA and other Western powers and is investing a lot in the development of some high-quality diplomatic resources," Inkster said.
"Whether the situation in Southeast Asia amounts to a new Cold War is not clear; but there are plenty of tensions which could boil over."
12 comments:
hope this war (china-viet Cong ) may bring up khmer slaver to help viet cong .as HUN SEN or His rang.
Khmers will help China for sure - That's why Khmers still have strong relationship with China. Cambodia and China will invade the whole Vietnam.
We, Viet, have a lot to offer to the world - Fresh arse off the boat ...barely 16...yummy, yummy!!!
you want?
Ms. Soap
That's not "how the west was won", it's rather "how the Viet was won", eh?
ROFLMAO
I wishes this gone come true so we can get KampucheaKrom back go China go kill all of the evils Vietgooges.
I wish China serious about this matter and go for the winner
Devil Vietnam,
You monster Vietnam: what go around, come around.
China will take care you soon.
Vietnam is very good at flip-flopping and crew up China easily. During the Vietnam War, China helped Vietnam to fight against US. When the War was over, Vietnam leaned to cooperate with Soviet Union to ignore China so they do not need to pay its loan from China.
When Vietnam invaded Cambodia,Vietnam did not bother to inform Soviet Union. After the Soviet Union collapsed, Vietnam kicked all the Russian who came to "advise" Vietnam out and tried to build relationship with China again.
Now, Vietnam had issue with China and try to get closed to US and other Western countries.
The Viet are always proud that they always kicked China ass in their history. They always thought that they are smarter than the Chinese so that is why they could fool China easily.
Vietnam controlled Laos and Cambodia, but the world does not see it. China just controlled Tibet, but the world against China about it. This is why the Viet always laugh at China about that.
The Viet has already sent their people to live in Thailand for decades and those people now every year, their representative in Thailand go back to Vietnam to celebrate their Independent on September 2nd every year.
According to the Viet, China is always the looser in their history book.
The Viet also always proud that they could eliminate the whole Champa Kingdom from the world map. Took away the whole central high land from the Montagnard people. Took Kampuchea Krom from Cambodia.
As a Buddhist follower, I believe that, it does not matter how the Viet has been proud of by fooling the world, but the bad Karma will come to them. That time is getting close. They would pay for their price soon.
I also wish China will destroy the Viets military and her puppets.
Viets are clever, they will find a way to get out of loosing everything. Live to fight another day.
They will loose small to keep big.
vietnam with all that human rights abuse, good luck with courting western armed deal. there is string attached for that, you know!
vietnam is dumb to play cat and mouse with the superpower china, you know!
@9:22AM,
The partial of the first part of your comment is correct regarding the Viet tricks and cleverness, but to undermine China from Viet aggression is far from being true and need serious understanding of the Chinese history during the warring state eras. Hind: The korea and Vietnam - Annam, were tributary states of China. Laos and Cambodia are economically control by China Laos government officials are hybrid of Chinese descent and controlled by China. Hun Sen leans more toward Beijing to playoff against Hanoi to stay in power; remember years ago when Vietnam push Hun Sen aside for new leadership? Hun Sen went to China and Hanoi retract its ambition? China is not a fool and must not be reckon with. Today, China is a world super power in the making and belittle her to these ingrate little gooks is beyond ignorance.
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