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BMI View: Alongside the Philippines, Vietnam has the most serious dispute with China concerning territories in the South China Sea. However, while relations between Manila and Beijing have all but broken down, Hanoi has done a better job of maintaining a good working relationship with the Chinese. Managing ties with China is only part of Vietnam's approach to protecting its interests, however. The Vietnamese defence budget has reached a record high of U$3.7bn for 2013 - still very low for a country of Vietnam's size, but enough to enable some new systems to be procured. On that front, Hanoi is pursuing a dual approach. The first part of the strategy has been to deepen a long-standing defence partnership with Russia. A U$600mn order for 12 additional Sukhoi Su-30 fighter aircraft was placed in Augu ...
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