Vietnam to produce Rafael Spike missiles locally in $250 million deal
Agreement includes technology transfer and establishment of a manufacturing facility on Vietnamese soil.
The Vietnamese army will be equipped with Spike anti-tank missiles manufactured by Rafael Advanced Defense Systems in a deal worth approximately $250 million. The agreement was signed in recent days between Vietnam’s Ministry of Defense and Rafael and includes provisions for the missiles to be manufactured at a factory to be established in Vietnam, with the necessary know-how transferred from Israel. The facility will be operated by a local company that will receive a production license from Rafael.
According to a report by the French website Intelligence Online, which covers defense and intelligence affairs, the Vietnamese army will receive one of the newest versions of the Spike missile - the Firefly. This system is a tactical loitering missile designed for use by ground forces, particularly in urban environments, and is capable of striking targets at ranges of up to 40 kilometers.
The Firefly operates as a drone-like missile that loiters over a designated target area and detonates upon command from its operator. The Israel Defense Forces made operational use of the Spike Firefly during fighting in Gaza following the October 7 war. According to official data from Rafael, the company has sold Spike missiles from a wide range of models to 42 armies worldwide. Rafael declined to comment on the new deal with Vietnam.
Israel and Vietnam maintain close security ties that include significant arms transactions. Less than a year ago, Vietnam ordered two intelligence satellites from Israel Aerospace Industries (IAI) in a deal valued at approximately $700 million, which, according to a security source, includes the cost of launching the satellites into space. The satellites are expected to be delivered within the next few years.
About a decade ago, Vietnam’s Ministry of Defense purchased Rafael’s SPYDER air defense system for roughly $600 million. An attempt by the Israeli company several years ago to secure an additional deal for similar systems was unsuccessful, even as the Vietnamese Air Force has shown growing interest in IAI’s Barak MX air defense system.
Vietnam’s procurement of Israeli defense technology comes amid rising tensions in the South China Sea, where China has expanded its control over disputed areas also claimed by countries including Thailand, the Philippines, and Vietnam.
