Vietnam's Strategic Shift: Covert Arms Deals with Russia

Vietnam has significantly increased its military purchases from Russia, culminating in a covert agreement reportedly worth $8 billion for the acquisition of 40 Sukhoi Su-35 fighter jets. This development comes despite ongoing U.S. efforts to counteract Russia's war economy, particularly in light of the conflict in Ukraine. An investigation by The New York Times, based on internal documents from Russian state exporter Rostec and interviews with officials, reveals that Vietnam has resumed negotiations for large arms deals, which had been halted early in the Ukraine war.

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To facilitate these transactions without triggering Western sanctions, Vietnam and Russia have established a specialized financial scheme. Payments are routed through joint oil and gas ventures rather than traditional banking channels. Rostec documents indicate that Vietnam is identified as “Customer 704” and includes contracts for electronic warfare systems and mobile ground-based jammers, valued at approximately $190 million. This financial workaround has raised concerns, as at least one Vietnamese company involved in these transactions was blacklisted by the U.S. Treasury in 2024-25.

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This renewed military partnership with Russia signals a broader geopolitical shift for Vietnam, which is diversifying its defense suppliers amid rising regional tensions. Analysts suggest that Vietnam's perception of Moscow as a more reliable partner has been influenced by perceived inconsistencies in U.S. foreign policy, particularly during Donald Trump's administration. As U.S.-Vietnam relations peaked under President Joe Biden, the subsequent return of Trump has led to frustrations in Hanoi, prompting a reevaluation of its defense strategies.

Vietnam Strengthening Military Ties With Russia, Investigation Claims

Vietnamese officials have expressed that the U.S. must recognize the long-term nature of its defense transition and should focus on enhancing cooperation in non-military sectors rather than pressuring Vietnam to cease its arms purchases from Russia. One senior official stated, “The U.S. must accept that Vietnam’s defense transition to a more diversified source of supply is a long-term process… It cannot be done overnight.”

Vietnam Strengthening Military Ties With Russia, Investigation Claims

While the New York Times investigation provides substantial evidence of Vietnam's arms purchases and financial arrangements, there remains a lack of official acknowledgment from the Vietnamese government regarding these transactions. Furthermore, discrepancies exist regarding the extent of military acquisitions and the specific nature of the financial mechanisms employed.

Vietnam Strengthening Military Ties With Russia, Investigation Claims

• “The US. must accept that Vietnam’s defense transition to a more diversified source of supply is a long-term process,” — Senior Vietnamese Official

Vietnam Strengthening Military Ties With Russia, Investigation Claims

• “Vietnam’s renewed partnership with Russia signals frustration with American policy under the Trump administration, which cut aid programs and imposed new tariffs.” — Analyst Commentary

Is the U.S. Losing Vietnam as Russia, China, and North Korea Gain Ground?

As Vietnam deepens its military ties with Russia, the implications for regional power dynamics are significant. This shift not only reflects Vietnam's strategic recalibration but also highlights the challenges the U.S. faces in maintaining influence in Southeast Asia amidst evolving geopolitical landscapes. The ongoing developments warrant close observation as they may reshape alliances and defense strategies in the region.

Is the U.S. Losing Vietnam as Russia, China, and North Korea Gain Ground?