Hanoi and Moscow signed a major arms deal and a nuclear energy agreement on Tuesday during a visit to Russia by Vietnamese Prime Minister Nguyen Tan Dung.
Vietnam agreed to buy Russian-made submarines and aircraft in the arms deal, which was signed in the presence of Russian Prime Minister Vladimir Putin and his Vietnamese counterpart.
ââ‚¬Å“Vietnam signed a contract for the purchase of submarines, planes and military equipment with the corresponding cooperation of the Russian side,ââ‚¬ Dung said in remarks translated into Russian.
Details were not released on the deal between Russian state-owned arms exporter Rosoboronexport and Vietnamââ‚¬â„¢s defense ministry.
However the Interfax news agency, citing an unnamed defense industry source, reported that Vietnam had agreed to buy six Russian-made submarines for a total price tag of about US$2 billion (1.37 billion euros).
The six Kilo-class diesel-electric subs would be built for the Vietnamese navy at a rate of one per year, Interfax reported.
Moscow and Hanoi also inked a deal on the construction of Vietnamââ‚¬â„¢s first atomic power plant.
Last month the Vietnamese parliament approved building the countryââ‚¬â„¢s first nuclear power station, a lucrative project that has been keenly watched by potential foreign partners.
The agreement signed in Moscow was described as a memorandum on cooperation between Vietnamese electricity company EVN and Russiaââ‚¬â„¢s state-owned atomic energy firm Rosatom, which had been interested in the project.
ââ‚¬Å“Vietnam officially invites the Russian side to cooperate in the building of the first atomic energy plant in Vietnam under adherence to the necessary conditions,ââ‚¬ Dung said, without elaborating.