The survival of the economic well-being of Malaysia is very much dependent on seaborne trade and maritime resources, and these elements are treated as national strategic interests and maritime strategic values. All these values and areas of interest must be protected and safeguarded from any maritime issues and potential threats that can affect Malaysia. This objective can only be achieved if this country has a capable and credible assets or platform for enforcement activities, and reliable, sustainable and competent maritime defence industries which involving shipyards, local vendors, and subsequently supported by other stakeholders. Thus, the development of local vendors in the maritime defence industries is vital for Malaysia. Therefore, this research is about analysing the importance of having sustainable and competent local vendors for the industry; hence proposing a new framework to develop and create more sustainable and competent local vendors. This research has adopted qualitative method, and focuses on Boustead Naval Shipyard (BNS) as Anchor Company and its local vendors as a case study, and data collection processes through interview, observation and document review, and NVIVO as a tool to mapping up the data compilation. With the implementation of new Vendor Development Program (VDP) framework, it has successfully created more sustainable and competent local vendors for the industry, and this effort must be continued. Failure in implementing this initiative effectively will affect the Government aspiration and policy related to National VDP agenda and the concept of Self-Reliance as required by National Defence Policy (NDP).