09 Desember 2010

BAE Systems Looking to Vietnam as Part of Growth Strategy

09 Desember 2010

BAE System offers three OPV previously bound for Trinidad & Tobago to Vietnam (photo : trinituner)

BAE Systems is exploring opportunities in Vietnam's defence market with the South Asian state's growing naval requirements likely to be of particular interest to the UK headquartered group, Jane's understands.

Such a strategy would be consistent with BAE Systems' emphasis on growth both within its home markets and in adjacent markets beyond. The UK group had previously looked to South Korea as a priority market, although interest subsequently appeared to wane.

BAE Systems' strategists are unlikely to have discounted the exploration of the potential sale to Vietnam of three offshore patrol vessels previously bound for Trinidad & Tobago. The GBP150 million (USD240 million) contract was suspended in September, when the government of Trinidad & Tobago announced it no longer wished to proceed. BAE Systems subsequently announced discussions with Trinidad & Tobago in an effort to achieve a resolution, through the exploration of a third-party sale of the three ships. Two of these - Port of Spain and Scarborough - are ready for acceptance and delivery; the third - San Fernando - is close to completion, although work stopped in November.

A spokeswoman for BAE Systems told Jane's on 7 December: "We are seeking to engage in commercial discussions with GORTT [the Government of the Republic of Trinidad & Tobago] and hope to reach an equitable settlement." She added: "We don't have anything to comment on regarding Vietnam."

For Western countries, Vietnam represents a market with rapid economic growth (hovering between five and eight per cent per annum between 2006 and 2009).


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