India and Vietnam are reportedly close to finalizing a major defence agreement, which includes a USD 700 million deal for the BrahMos missile system.

The sources state that the agreement is anticipated to be inked in a few months once both Vietnam and India fill up additional procedural elements. According to the information obtained, the Vietnamese Defense Ministry has already discussed and communicated the preliminary techno-commercial data. According to defence sources, a contract for the purchase of BrahMos missile systems will be signed by the Vietnamese Army and Navy. 

If the deal is finalized, Vietnam will become the second country, following the Philippines, to purchase BrahMos supersonic cruise missiles from India. Vietnam has been waiting for the final agreement, which will cover the cost, delivery timeline, and payment terms from BrahMos Aerospace (BAPL).

This development coincides with leadership issues at BrahMos Aerospace. Citing issues with seniority and merit, Dr. Sivasubramanyam Nambi Naidu has filed a lawsuit to overturn Dr Jaiteerth Raghavendra Joshi's appointment as BrahMos's new CEO and Managing Director.

Lieutenant General NS Raja Subramani, India's Vice Chief of the Army Staff, is now in Vietnam while the missile system contract is being worked out. He travelled to Hanoi to attend the Vietnam People's Army's 80th anniversary. The visit aims to strengthen the military ties between the two countries, which is crucial for security in the Indo-Pacific region.