[Exclusive] Vietnam Finalizes $350 Million K-9 Howitzer Deal... First Export to a Communist Country [Yang Nakgyu's Defence Club]

The domestically produced K-9 self-propelled howitzer has been exported to Vietnam for the first time. The export of the K-9 to Vietnam marks not only the first entry into a Southeast Asian country, but also the first case involving a former communist bloc nation. With the introduction of the K-9, Vietnam has become the 10th member of the 'K-9 User Club' worldwide. The contract is valued at approximately 350 billion KRW.

According to the government and related industry sources on August 11, Hanwha Aerospace, the manufacturer, announced on July 27 that it had signed a contract to supply 20 K-9 self-propelled howitzers to KOTRA. A government official explained, "This export of K-9 self-propelled howitzers is not a direct supply by Hanwha Aerospace, but rather a government-to-government (G2G) transaction, with the delivery being handled through KOTRA."

The value of this K-9 export is $250 million (approximately 350 billion KRW). This is about 50 billion KRW less than initially expected, reportedly because maintenance, repair, and overhaul (MRO) contracts were excluded. Analysts suggest this may be in anticipation of a potential second contract in the future.

The export of K-9 self-propelled howitzers to Vietnam began in 2022, when then-Vietnamese President Nguyen Xuan Phuc visited Korea to mark the 30th anniversary of Korea-Vietnam diplomatic relations. The Ministry of National Defense pledged to enhance defense and defense industry cooperation with Vietnam, in line with the elevation of bilateral ties to a 'comprehensive strategic partnership.' Vietnamese Defense Minister Phan Van Giang also visited Korea and personally inspected the K-9 self-propelled howitzer at the 7th Maneuver Corps, a core component of the Korean Army's ground forces. In November of last year, Vietnam sent military personnel to Korea to participate in K-9 operation, firing, and maintenance training provided by the Korean Army for foreign troops.

Experts note that exporting defense equipment to a communist country carries significant symbolic meaning. Until now, Korean defense companies have generally refrained from doing business with communist or military regimes. However, as the strategic rivalry between the United States and China has intensified and the international political landscape has shifted, new markets in communist countries have become accessible. Vietnam is currently engaged in a territorial dispute with China over the Spratly Islands (known as Truong Sa in Vietnam). Some analysts suggest that if Vietnam adopts Korean-made weapons systems compatible with those of NATO countries, it could signal a move toward an 'anti-China' or 'de-China' policy. There have also been concerns about the potential leakage of technology to North Korea, but it is reported that both sides have signed a separate agreement to address this issue.

The Vietnamese military is also scheduled to visit domestic defense industry production sites in conjunction with the visit of Communist Party General Secretary Nguyen Phu Trong to Korea. On this day, Vietnamese Artillery Commander Nguyen Hong Phong will visit Hanwha Aerospace's Changwon plant and will hold a business meeting with Hanwha Aerospace executives on August 13. Vietnam has also shown interest in the domestically produced Cheongung II surface-to-air missile interception system. On August 14, the delegation is expected to visit LIG Nex1, the manufacturer of Cheongung II.

With Communist Party General Secretary Nguyen Phu Trong making a four-day state visit to Korea at the invitation of President Lee Jaemyung starting August 10, cooperation is expected to expand not only in defense, but also in areas such as nuclear power and high-speed rail.