Title: Biden Administration in Talks with Vietnam for Largest Arms Transfer in History
Date: September 23, 2023
The Biden administration is engaged in discussions with Vietnam regarding a groundbreaking arms transfer agreement, which, if finalized, would mark the largest deal of its kind in history between the former Cold War adversaries. According to sources familiar with the matter, the potential agreement has the potential to unsettle China and sideline Russia.
The agreement, which is expected to materialize within the next year, would cement the upgraded partnership between Washington and Hanoi, with the proposed sale of a fleet of American F-16 fighter jets to Vietnam. This move comes as tensions escalate between Vietnam and China in the disputed South China Sea.
While the deal is still in its early stages and specific terms have yet to be ironed out, it has been a prominent topic of discussion during diplomatic talks between Vietnamese and U.S. officials in Hanoi, New York, and Washington over the past month.
One of the key considerations being explored by Washington is the possibility of structuring special financing terms for the expensive military equipment, potentially enabling cash-strapped Vietnam to reduce its reliance on more affordable Russian-made weaponry.
Neither the White House nor the Vietnamese foreign ministry has responded to requests for comment on the matter.
A U.S. official stated, “We have a very productive and promising security relationship with the Vietnamese, and we do see interesting movement from them in some U.S. systems, in particular anything that can help them better monitor their maritime domain, perhaps transport aircraft and some other platforms.”
The potential arms deal between the United States and Vietnam could provoke China, Vietnam’s larger neighbor, which remains wary of Western attempts to restrain Beijing. As the territorial dispute in the South China Sea between Vietnam and China intensifies, Vietnam seeks to reinforce its maritime defenses without provoking a strong response from China.
Jeffrey Ordaniel, Associate Professor of International Security Studies at Tokyo International University, highlighted that Vietnam is developing asymmetric defensive capabilities while striving to avoid an aggressive response from China. “It is a delicate balancing act,” he said.
Ordaniel also suggested that the United States should reallocate funds set aside for military financing in the Middle East to the Indo-Pacific region, enabling countries like Vietnam, the Philippines, and Taiwan to afford the weaponry necessary to counter Chinese influence.
The Biden administration has consistently emphasized the significance of managing the United States’ relationship with China responsibly while balancing geopolitical competition in the Pacific region.
Earlier this month, Vietnam accorded Washington its highest diplomatic status, placing the United States on par with China and Russia. President Joe Biden’s visit to the country marked a dramatic turnaround in bilateral relations almost half a century after the end of the Vietnam War.
Since lifting the arms embargo in 2016, the United States has predominantly exported coast guard ships and trainer aircraft to Vietnam, while Russia has supplied approximately 80% of the country’s arsenal.
Vietnam currently spends an estimated $2 billion annually on arms imports. Officials in Washington are optimistic that Vietnam will gradually shift a portion of its defense budget towards the purchase of weapons from the United States or its partners such as South Korea and India.
However, the cost of U.S. weaponry and training on these systems pose significant hurdles, leading Vietnam to have only acquired less than $400 million of American arms over the past decade.
A U.S. official acknowledged, “Vietnamese officials are well aware that they need to spread the wealth. We need to lead the charge in helping Vietnam get what it needs.”
Meanwhile, the ongoing conflict in Ukraine has complicated Hanoi’s longstanding relationship with Moscow, making the procurement of supplies and spare parts for Russian-made arms increasingly challenging. Nevertheless, Vietnam is also actively engaged in negotiations with Russia for a new arms supply agreement, potentially triggering U.S. sanctions.
Reporting by Trevor Hunnicutt and Nandita Bose; Additional reporting by Francesco Guarascio in Hanoi and Mike Stone in Washington; Editing by Rosalba O’Brien.
Acquire Licensing Rights
[Insert additional information about licensing rights]
Our Standards: The Thomson Reuters Trust Principles