Vietnam’s-First-Aircraft-Engine-Component-Factory-Has-Began-Operations
Vietnam’s First Aircraft Engine Component Factory Has Began Operations
Vietnam’s first aircraft engine parts factory has began operations. The factory which is an the investment of South Korea’s Hanwha Aerospace company is located at the Hoa Lac Hi-tech Park in Hanoi and will reach its full scale operation capabilities in January 2019.
Currently, Hanwha is the only aircraft engine maker in South Korea and is recognised as one of the world’s top 10 most technologically advanced aerospace companies. Thus, it is expected that the company’s investment in Vietnam will facilitate the development of Vietnam’s aviation and precision mechanical industries. Additionally, it is projected that by 2024, the factory in the Hoa Lac Hi-tech Park would have around 900 employees with an investment capital of US$370 million, symbolising a strong technological transfer between South Korean and Vietnamese enterprises and enabling an advancement towards the development of high technology capabilities within Vietnam.
In addition to its main facility currently in Changwon, South Korea, Hanwha Aero Engines is the second production base of Hanwha Aerospace. Therefore, this factory is a major part of the South Korean engine marker’s plans in terms of increasing its market share of civil aircraft engine parts to about US$ 879 million and leading the aircraft parts processing industry by 2025.
According to Minister of Science and Technology, Chu Ngoc Anh, the Hoa Lac Hi-tech Park has 87 investment projects as of now and possesses a registered capital of US$3.34 billion. However, the Hanwha brand name would lay the foundation for Hoa Lac to attract more hi-technology companies from other countries which would contribute significantly to Vietnam’s science-technology capabilities.
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