Prime Minister Nguyen Tan Dung said the government would spend USD 540 million on the new coast guard and fishery patrol vessels.
The decision was made yesterday, according to a government statement released later the same day.
Vietnam and China have sparred for years over who owns what in the South China Sea but tensions escalated sharply in early May when Beijing deployed a large oil rig near the disputed Paracel islands.
The Vietnam government says it hasn't deployed navy vessels anywhere near the rig.
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