Prepare your mind and welcome the opportunity to join the aerospace production chain

The market opportunity is huge.

As a company operating in the field of precision mechanics, Mr. Vu Manh Giap - Deputy Director of TCI Precision Joint Stock Company - said that the company is also meeting international production standards to produce components for FDI enterprises, so the conversion to meet international certification standards such as the Aerospace Quality Management System Certification (AS9100) for the company is not too difficult. Wishing to participate in the aviation and aerospace value chain, but for a company like TCI, the biggest difficulty is how to connect with businesses in the global aviation and aerospace value chain.

A 787 Dreamliner being assembled at Boeing's factory in North Charleston, South Carolina, USA in May 2023. Photo: AFP

Sharing the same view on this issue, Mr. Nguyen Hong Phong - CEO of An Mi Tools Co., Ltd. (An Mi Tools) - said that currently, airlines in the EU and the United States are very interested in finding production units in Vietnam to transfer the supply chain from China. This is a good and great opportunity for Vietnamese enterprises. According to market analysis, the increase in demand for aircraft in the next 20 years is attractive. However, in the initial stage, for Vietnamese enterprises to be able to enter the production chain, we see it as quite difficult and costly, the risk of failure is high while we have not really assessed the nature of this business, as well as important factors of stability and order size.

According to Airbus' latest Global Services Forecast (GSF), the commercial aviation services market in the Asia-Pacific region will double in value from $52 billion today to $129 billion by 2043.

The market value of the aircraft maintenance segment is forecast to more than double from $43 billion to $109 billion; the aircraft modification and upgrade segment is expected to grow similarly from $5.1 billion to $13 billion; while the training and operations segment is expected to grow from $4.1 billion in 2024 to $7.6 billion in 2043. This is due to the demand for approximately 19,500 new aircraft and air passenger traffic in the region growing at a CAGR of 4.81%. In particular, this growth in the aviation industry will require a large number of supporting industrial components.

Regarding the experience and investment potential of manufacturing aerospace components in Vietnam, Mr. Onaga Masaru - Chairman of Onaga Vietnam Company, the demand for commercial aircraft in the next 20 years is expected to be about 36,000 units. The global commercial aircraft market will grow at an annual rate of about 5% in the next 20 years. The growth rate of Vietnam's aviation market ranks 5th in the world and 1st in Southeast Asia. The above data shows a great opportunity to join the industry supporting the aviation and aerospace sector of Vietnam.

However, according to Mr. Onaga Masaru, the aircraft manufacturing industry is a relatively new field in Vietnam. Currently, there is no domestic manufacturer in Vietnam that is qualified to participate in the aircraft supply chain. Boeing, the American aircraft manufacturing company, is currently interested in the Vietnamese market, opening up business opportunities for Vietnam.

Promoting connectivity and supporting businesses to participate in the global production chain

Mr. Nguyen Hoang - Chairman of the Hanoi Association of Supporting Industry Enterprises (Hansiba) - commented that although the manufacturing industry for the aviation and aerospace sector in Vietnam is still new, it is undergoing rapid changes and will have a spillover effect to promote the development of other industries.

To join the world's supply chain of aviation and aerospace components, Mr. Nguyen Hoang said, meeting international technical and quality standards is a prerequisite. In particular, being granted AS9100 certification will be a "passport" for Vietnamese enterprises to participate in the global value chain with multinational corporations in this field.

In response to the businesses’ recommendations, Mr. Nguyen Hoang said that Hansiba will accompany businesses through trade promotion activities and trade activities with organizations and associations related to this field. In addition, Hansiba will also cooperate with partners from other countries in training, technology transfer, production processes, as well as support businesses to obtain global manufacturing certification, thereby helping Vietnamese businesses access the global production chain in the field of aviation and aerospace.

Mr. Nguyen Dinh Thang - Deputy Director of the Department of Industry and Trade of Hanoi City - suggested that partner enterprises actively share production experience, customers, markets, cooperate in production and business, and transfer technology with enterprises in the city to produce, trade and develop products in the aviation industry, and participate in the global aerospace component production and supply chain.

According to Ms. Cristina Aguilar Grieder - Senior Vice President of Customer Services at Airbus, Airbus will continue to play an important role in supporting airlines and the aviation industry in general to adapt to the opportunities that the market brings.

Mr. Hoang Quang Phong - Vice President of the Vietnam Federation of Commerce and Industry (VCCI) - assessed that the aerospace industry is a modern industry, affirming the position, mindset and readiness of Vietnamese enterprises for the development of the world's modern industry.

With Vietnam's extensive participation and comprehensive strategic partnership with the world's industrial powers, Mr. Hoang Quang Phong believes that, with the direction and orientation of the Party - State and Government of Vietnam, along with the support of the Governments of other countries, especially the coordination of Vietnamese enterprises and enterprises of other countries in cooperation - production - services will bring positive results for all parties, together participating in the global production chain.

During his working trip to attend the 79th United Nations General Assembly High-Level Week in New York, General Secretary and President To Lam recently received Mr. Brendan Nelson - Senior Vice President of Boeing Corporation and President of Boeing Global Company.

According to information from VNA, at the meeting, General Secretary and President To Lam expressed his thanks and acknowledged Boeing's commitments to supporting Vietnam in developing the aviation and aerospace industrial ecosystem in the coming time.

Appreciating Boeing's business achievements as well as its cooperation and support with Vietnam in recent times, especially when Vietnam and the United States have just upgraded their relationship to a Comprehensive Strategic Partnership, General Secretary and President To Lam affirmed that the Party, State and People of Vietnam are committed to creating all favorable conditions, in accordance with the provisions of law, for US investors in general and the Boeing Group in particular to invest and do business effectively and sustainably in Vietnam.

In particular, Vietnam encourages Boeing to strengthen cooperation, support human resource training, R&D cooperation, technology transfer, and bring Vietnamese partners deeper into the group's supply chain.

During the meeting, the Vietnamese side also requested Boeing to continue to closely coordinate with Vietnamese partners to complete and deliver aircraft purchase orders signed in the past. In particular, Boeing should soon research and invest in component manufacturing plants, build regional aircraft equipment and machinery maintenance centers associated with major airports in Vietnam; at the same time, strengthen cooperation, support human resource training, cooperate in the field of research and development (R&D), technology transfer, and bring Vietnamese partners deeper into Boeing's supply chain.

On Boeing's side, Mr. Brendan Nelson highly appreciated the vision and viewpoint of General Secretary and President To Lam on the importance of aviation economy in supporting Vietnam's socio-economic development.

At the same time, Boeing affirmed that it had had many meetings with the leaders of Vietnam Airlines to provide financial support and find solutions to difficulties. The two sides are determined to complete the contract signed during President Joe Biden's visit to Vietnam last year in 2028.

In addition, the Senior Vice President of Boeing Corporation also committed that Boeing will support the construction of an aviation ecosystem in Vietnam in the coming time, focusing on building aviation infrastructure, training human resources, building airports, and aircraft repair and maintenance facilities.

Source: https://congthuong.vn/chuan-bi-tam-the-don-co-hoi-gia-nhap-chuoi-san-xuat-nganh-hang-khong-vu-tru-348937.html