Vietnam’s economic problems appear to have slowed its military modernisation effort, and are making it harder for Hanoi – which already spends much less on defence than its South East Asian neighbours – to keep pace with the rising military outlay being seen around the region. As a result there has been very little procurement activity so far in 2013. The country’s banking crisis may now be over the worst: the establishment of a new debt management agency in Q213 is expected to restore liquidity to the financial system, although further market reforms will be needed to restructure the banking …
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