Expert: Vietnam needs to accelerate the development of aviation support industry

While the fleet of new aircraft and ports is growing rapidly, Vietnam's aviation support industry is small and disproportionate, according to experts.

The comments were made by experts at the "Vietnam Aviation Investment Program Training - MRO - Logistic", August 15.

According to statistics from the Civil Aviation Authority of Vietnam, the fleet of aircraft registered in Vietnam as of March 15 was 222, of which 203 were commercial aircraft operated by domestic airlines. However, this number of aircraft does not reflect the full scale, because airlines can lease short-term with flight crews (wet lease) when necessary. In addition, some airlines have ordered more aircraft. In February, VietjetAir and Airbus signed a contract for more than 100 aircraft and the first ones are expected to be delivered this year.

Vietnam currently has 22 airports, serving 100 million passengers per year. According to the plan, the number of airports will increase to 30 by 2030 and 33 by 2050. It is forecasted that in the next 10 years, the number of passengers transported will reach nearly 300 million.

However, experts say the aviation industry is developing "limpingly" because it depends on foreign countries. In fact, airlines only buy aircraft without developing supporting industries such as maintenance, repair, research, manufacturing of spare parts and supporting machinery.

"The Vietnamese aviation support industry is still in its infancy and has nothing significant to offer," experts from the Vietnam Association of Aviation Science and Technology (VASST) assessed.

Specifically, apart from the VAECO Aviation Engineering Company, there is only one private unit, the Aircraft Engineering Company (AESC), which is involved in aircraft maintenance and repair. The ground aviation industry is also limited, with a few products from the ATTECH Air Traffic Management Company, serving flight management and navigation electronics products, according to VASST statistics.

Therefore, Dr. Tran Quang Chau - Chairman of VASST and Dr. Dinh Quang Toan - Deputy General Secretary of VASST said that "it cannot be any slower" for the aviation industry to develop sustainably.

Aircraft repair workshop in Hanoi on October 6, 2023. Photo: Giang Huy

The aviation support industry includes research, design, manufacturing, maintenance and repair of aircraft and ground equipment. It can provide many jobs, helping to balance the current uneven development of the industry.

However, one of the reasons why this sector has not developed, as pointed out by industry experts, is the lack of incentive mechanisms. The leader of a domestic airline said that Vietnam is operating on outsourcing flights when everything from aircraft, engines, and components such as brakes and tires must be imported. He admitted that it is normal for Vietnam to be greatly affected or pressured because "we do not grasp the core technology in the aviation industry".

Not to mention, the complete dependence on outsiders pushes up the costs of airlines. It is estimated that aircraft leasing, engine repair... account for nearly half of the cost structure of domestic airlines. They cannot intervene in these costs, they have to accept the world's common level.

Experts from VASST said that Vietnam needs to study mechanisms to encourage businesses to participate in developing aviation support industries. This will help businesses in the industry reduce their dependence on imported technology.

Along with that, human resource training, especially engineers, is also recommended by experts to be done soon. Dr. Tran Thi Thai Binh, Head of the Department of Aviation Economics (Vietnam Aviation Academy) commented that there is currently a significant gap between the demand and the ability to meet international standard aviation engineers in Vietnam.

“The challenge we face is our dependence on foreign talent for key technical and management positions. They play a role in the growth of the industry, but the question is how to develop professionals who can lead the industry,” she said.

Therefore, Ms. Binh believes that companies need to increase cooperation by bringing in foreign experts to teach and apply international practices. Thanks to that, future domestic experts can access advanced techniques and technology.

The need for high-quality human resources is a challenge, but also an opportunity to ensure that Vietnam remains a key player in global aviation. "But to seize this opportunity, we must act now," said Ms. Binh.

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