Vietnam began a program to modernize its military equipment in the mid-1990s following further
territorial disputes in the South China Sea with
China. One aspect of the program was to develop domestic production and repair capability.
Russia agreed to supply or co-produce small warships and missiles; In 1996, Russia and Vietnam agreed to co-produce the BPS-500; this may have been a part of or related to a cooperative military shipbuilding or program called KBO-2000. BPS-500 was designed by the
Severnoye Design Bureau. Two were ordered Severnoye was contracted to assist overhauling and upgrading the ship in 2013 ==Description==