The US and Vietnam are Negotiating the Largest Arms Purchase Agreement

25 September 2023

The weapons package to implement in 2024 including a sale of a squadron of US F-16 fighter jets to Vietnam (photo : dvids)

The Biden administration is negotiating with Vietnam the largest arms transfer deal in history.

An article by Reuters news agency published on September 23 said the above. In the article, the author cited two (unnamed) people who know about this agreement - which, according to Reuters, could make China uncomfortable and at the same time leave Russia out.

Reuters sources said that a weapons package could be implemented next year, including a sale of a squadron of US F-16 fighter jets to Vietnam at a time when Vietnam (VN) is facing challenges. in the tense dispute in the East Sea with Beijing.

According to Reuters, this deal is still in the early stages and the exact terms have not yet been discussed, and consensus may not be reached. But that was the main topic of official negotiations between Vietnam and the US in Hanoi, New York and Washington over the past month.

According to another unnamed Reuters source, Washington is considering structuring special financing terms for expensive equipment that could help cash-strapped Hanoi escape its traditional dependence on cheap weapons. Made in Russia.

Vietnam spends about 2 billion USD each year to import weapons and Washington is optimistic that in the long term, the Vietnamese Government can transfer part of that budget to weapons from the US or its allies and partners, especially especially Korea and India.

The cost of US weapons as well as training to use equipment is a major obstacle for Vietnam. And, that is also one of the reasons why Vietnam bought less than 400 million USD of US weapons in the past decade. Reuters said,

The Reuters article also analyzed that, meanwhile, the war in Ukraine has complicated Hanoi's long-standing relationship with Moscow, making access to supplies and spare parts for Russian-made weapons more difficult. so it's more difficult. However, Vietnam is also actively negotiating with Moscow on a new arms supply deal that could trigger US sanctions.

See full article RFA