Vietnam Defense Electronics Market

Vietnam Defense Electronics Market Overview:

The Vietnam defense electronics market size reached USD 704.00 Million in 2024. Looking forward, the market is projected to reach USD 1,085.60 Million by 2033, exhibiting a growth rate (CAGR) of 4.93% during 2025-2033. The market is driven by military modernization initiatives and diversification from Russian arms dependency as Vietnam seeks to enhance its defense capabilities amid South China Sea tensions. Substantial investments in defense electronics and cybersecurity infrastructure, including the establishment of advanced AI research centers, along with strategic international technology partnerships and industry transformation efforts are contributing to the Vietnam defense electronics market share.

Vietnam Defense Electronics Market Trends:

Adoption of Advanced Radar and Surveillance Technologies

Vietnam is focusing on modernizing its defense capabilities, emphasizing advanced radar and surveillance technologies. The deployment of sophisticated radar systems unmanned aerial vehicles (drones), and electronic monitoring solutions is aimed at enhancing situational awareness, securing borders, and protecting maritime zones. In March 2025, Vietnam's first radar satellite, LOTUSat-1, was completed and ready for launch following a partnership with Japan's Sumitomo Corporation. Weighing 600kg, it can monitor weather conditions and provide high-quality imagery for disaster response and resource management. The launch was postponed after an unsuccessful test of Japan's Epsilon-S rocket. These technologies provide real-time intelligence, improved target detection, and quick threat response capabilities, which are essential for national security in an ever-changing geopolitical environment. Additionally, the integration of automated surveillance and sensor networks allows for more efficient monitoring of extensive territories, decreasing reliance on manual operations and human resources. Investment in these technologies also promotes collaboration with global defense electronics companies, encouraging technology transfer and skill development within domestic industries. This trend is a key driver of Vietnam defense electronics market growth, positioning the country to enhance its defense readiness and technological self-sufficiency.

Modernization of Defense Systems

Vietnam is diligently working to modernize its defense infrastructure in response to emerging security threats and technological advancements. Outdated communication networks, surveillance systems, and combat equipment are being enhanced with cutting-edge electronics to improve operational efficiency, interoperability, and real-time decision-making. The upgraded defense systems incorporate advanced sensors, automated command-and-control platforms, and secure communication channels, enabling the armed forces to effectively counter both conventional and asymmetric threats. In August 2025, Vietnam's Ministry of Defense established the Artillery and Missile Command, enhancing military capabilities. General Nguyen Tan Cuong highlighted the reorganization's aim of modernizing the armed forces, integrating updated artillery and missile systems to adapt to evolving strategic challenges. The transition toward network-centric operations facilitates improved coordination among military branches, boosting situational awareness and mission execution. Furthermore, these modernization initiatives promote domestic research and development, encouraging innovation in defense electronics and decreasing dependence on foreign technologies. By committing to comprehensive upgrades across various domains, Vietnam is bolstering its defense readiness, resilience, and strategic capabilities, positioning itself for continued growth and technological advancement in the regional security environment.

Vietnam Defense Electronics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on equipment and usage.

Equipment Insights:

• C4ISR Systems
• Weapon Systems
• Electro-Optical and Infrared (EO/IR) Systems
• Military Simulators
• Radar Systems
• Avionics
• Electronic Warfare
• Others

A detailed breakup and analysis of the market based on the equipment have also been provided in the report. This includes C4ISR systems, weapon systems, electro-optical and infrared (EO/IR) systems, military simulators, radar systems, avionics, electronic warfare, and others.

Usage Insights:

• Land
• Air
• Naval
• Space

The report has provided a detailed breakup and analysis of the market based on the usage. This includes land, air, naval, and space.

Regional Insights:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Vietnam Defense Electronics Market News:

• In September 2025, Viettel Group showcased its cutting-edge military technology at the Vietnam Independence Day Parade. Highlights included the new Trường Sơn missile system, modernized air defense capabilities, advanced UAVs, and electronic warfare vehicles, reinforcing Viettel's role in national defense and its leadership in telecommunications.

Vietnam Defense Electronics Market Report Coverage:

Key Questions Answered in This Report:

• How has the Vietnam defense electronics market performed so far and how will it perform in the coming years?
• What is the breakup of the Vietnam defense electronics market on the basis of equipment?
• What is the breakup of the Vietnam defense electronics market on the basis of usage?
• What is the breakup of the Vietnam defense electronics market on the basis of region?
• What are the various stages in the value chain of the Vietnam defense electronics market? 
• What are the key driving factors and challenges in the Vietnam defense electronics market?
• What is the structure of the Vietnam defense electronics market and who are the key players?
• What is the degree of competition in the Vietnam defense electronics market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam defense electronics market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam defense electronics market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam defense electronics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.