Vietnam is moving to strengthen its urban combat capabilities through a reported $250 million deal with Rafael Advanced Defense Systems for local manufacturing of the Spike Firefly loitering munition.

As reported by Intelligence Online, production will be established inside Vietnam under a technology transfer framework, with a domestic company operating the facility after securing the necessary Israeli production authorizations.

Spike Firefly is a lightweight, man-portable loitering munition purpose-built for close-quarter and urban combat, where traditional artillery and air support pose high collateral-damage risks. Weighing just 3 kg, it carries a 350-gram warhead and can engage targets at up to 500 meters in built-up areas and 1.5 km in open terrain.

The system offers 15 to 30 minutes of operational endurance, extendable to two hours in standby mode, giving infantry units persistent ISR and precision strike capability in complex environments. The munition has already seen operational use by the Israel Defense Forces, including in post-October 7 Gaza operations.

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