To better position itself in ongoing maritime disputes and competition with China and other countries in the South China Sea, Vietnam has sought foreign partners and allocated more money to building out its navy. Vietnam needs a strong maritime force to leverage its strategic location along the sea and to protect its economic interests there, such as oil resources and fishing areas in the crowded waters east of Vietnam. For its defense procurement, Vietnam primarily has relied on Russia, which is more willing to sell the advanced weaponry that Vietnam requires than other countries. Cost also is pushing Vietnam toward the Russians. Despite its growing naval budget, Vietnam is not a rich country, and even if Russian weapons are not always the best on the market, they are often cost-effective. In addition to building a fleet of submarines for Vietnam, Russia also is providing training on operating the six improved Kilo-class diesel-electric submarines Vietnam has ordered. Including weapons and training, by 2018 Russia is to deliver the vessels for $3.2 billion. Since 2008, the Vietnamese navy also has taken delivery from Russia of two Gepard-class guided-missile stealth frigates and K-300P Bastion mobile coastal defense anti-ship missile systems. In another matter of shared interest, Russian firms are updating and expanding the port of Cam Ranh Bay. The bay occupies a highly strategic location close to the sea-lanes of the South China Sea. Foreign navies have used it for more than 100 years as a deep-water port. Russia used Cam Ranh Bay as a naval base until 2002, when it withdrew for financial reasons. Moscow has since expressed a renewed interest in using the port. The United States also has an increased interest in Vietnam and this strategic port at a time when Washington is gathering all the allies it can in Southeast Asia to counter China's power. For its part, Vietnam is using this renewed U.S. interest to play Washington and Beijing off each other. If China continues to exert its power in the South China Sea, Vietnam could threaten to make deals with the United States. And if the United States does not help Vietnam, Hanoi could block the United States from using Vietnamese ports. While Vietnam's naval buildup will not eliminate the competition, it will improve Hanoi's position as it pursues its interests in the South China Sea.
