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Economy / Vietnam

Vietnam

May 2011 | Risk Summary

The National Assembly (NA) has announced that it will review proposals to increase the allocation of excess budget revenues towards national defence and security. Chair of the NA Committee for Defense and Security, Le Quang Binh has proposed to invest more resources in the production and maintenance of weapons, and defending Vietnam's sovereignty in the South China Sea. We see this as a clear indication that Hanoi is becoming increasingly concerned over China's growing military presence and assertiveness in the South China Sea.

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