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June 28, 2015

Thailand may procure three submarines from China for $1bn

The Royal Thai Navy has reportedly shortlisted Chinese diesel electric attack submarines, after the Thai Naval procurement committee voted in favour of China's offer.

By Samseer M

The Royal Thai Navy has reportedly shortlisted Chinese diesel electric attack submarines, after the Thai Naval procurement committee voted in favour of China’s offer.

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What is driving and impacting South Korea’s Defense Market?

South Korea’s defense budget is currently valued at $48.3 billion after experiencing impressive and robust annual growth of 10.5% in 2022. Over the forecast period, South Korean defense expenditure is anticipated to register a strong CAGR of 6.3% over 2023-27 and reach $66.2 billion by 2027. The country’s acquisition budget, which includes research and development (R&D) funding, is also anticipated to register significant growth, projected to reach $21.6 billion in 2027, seeing significant rise from the anticipated $17 billion in 2023. South Korean defense spending is continuing to be fueled by the country’s hostile relationship with North Korea, coupled with the need to develop its own domestic industry. If you want to strategize successfully off this growing market, it is important to be fully informed. This report’s key findings include:
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For this THB12bn ($1.06bn) project, the country also received offers from European countries, such as Russia, Sweden, and France.

China’s Type 039B diesel-electric submarine reportedly features superior weapons and technology, as well as the capability to stay underwater longer than vessels offered by competitors.

The Thai Navy is planning to purchase these new capabilities as part of an increased 2016 defence budget.

"This new move will help the country to combat growing territorial threats and conduct a variety of other maritime missions."

With support from Thailand Deputy Prime Minister and Defence Minister Prawit Wongsuwon, this new move will help the country to combat growing territorial threats and conduct a variety of other maritime missions.

The country has already invested THB200m ($6.43m) for a feasibility study on the proposed procurement submarines.

The navy had planned to procure six German-made submarines at a cost of THB7.7bn ($247.81m) in 2011. But the plan was not approved by the government at the time.

However, the country revived its plans last year in a bid to achive the capability after nearly sixty years. Thailand’s last Japanese-built Matchanu-class submarine was retired from service in 1951.

This year, China received an order from the Pakistan Navy to provide eight submarines, which will be equipped with air independent propulsion, anti-ship missiles, Yu-4 (SAET-50) passive homing and Yu-3 (SET-65E) active / passive homing torpedoes.

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Free Report
img

What is driving and impacting South Korea’s Defense Market?

South Korea’s defense budget is currently valued at $48.3 billion after experiencing impressive and robust annual growth of 10.5% in 2022. Over the forecast period, South Korean defense expenditure is anticipated to register a strong CAGR of 6.3% over 2023-27 and reach $66.2 billion by 2027. The country’s acquisition budget, which includes research and development (R&D) funding, is also anticipated to register significant growth, projected to reach $21.6 billion in 2027, seeing significant rise from the anticipated $17 billion in 2023. South Korean defense spending is continuing to be fueled by the country’s hostile relationship with North Korea, coupled with the need to develop its own domestic industry. If you want to strategize successfully off this growing market, it is important to be fully informed. This report’s key findings include:
  • Details on the defense budget
  • Drivers of defense spending
  • Key trends impacting the market
Download the full report so you can formulate winning strategies for the road ahead.
by GlobalData
Enter your details here to receive your free Report.

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