Thayer Consultancy

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Background Briefing: Vietnam Orders Four Dutch SIGMA-Class Corvettes Carlyle A. Thayer November 4, 2011

[clientnamedeleted] We would like your assessment of the following: Vietnam has signed a deal with DutchScheldeshipyardforfourSIGMAclasscorvettes.Accordingtoreport,twowill be built in Vietnam. How will this balance out Vietnam's naval capabilities and improvedomesticshipbuildingcapabilities? ANSWER: Vietnam's decision to order four SIGMA class corvettes from the NetherlandscomesasasurpriseespeciallyafterVietnamtookdeliveryofitssecond Russian Gepardclass guided missile frigate this year. Vietnam will reportedly build two of the ship itself in partnership with the Dutch. This represents a major stride forward in Vietnamese defence industry capabilities. In 2005, Vietnam cancelled planstobuildaProject2100typecorvetteasbeyonditstechnicalcapacity.Vietnam hasbeenabletoassembleBPS2000corvettesfromknockupkitsbutwasnotableto step up to take charge of the complete construction process. The SIGMA class corvetterepresentsarevolutionarynewmodulartechnologyinwhichshipsfrom50 meters to 150 meters can be built. Indonesia is the only country in Southeast Asia withaSIGMAclasscorvette(seephotobelow). Last month Vietnam announced the productionofitsfirstindigenousgun boat. The SIGMA class represents a major step forward in technology andtonnage. TheSIGMAclasshastheflexibilityof interchanging missiles built in France, the Exocet. with Russian missilesifVietnamdecidestogothis route. The bottom line is that Vietnam is stepping up the pace of acquiring modern ships capable of defendingVietnameseinterestsinitsExclusiveEconomicZone,suchasarmedescort foroilexplorationvessels. SofarChinahas usedmainlycivilianenforceshipsinits dispute with Vietnam. China will now have to decide whether to accept the new statusquoorcommittodeployingPeoplesLiberationArmyNavywarships.