Vietnam’s Aviation Industry: Challenges and Opportunities
Introduction to the Roundtable Conference
Recently, the National Exhibition Center hosted a pivotal roundtable conference titled “From Aspiration to Opportunity in Developing the Aviation Industry.” Keynote speaker Tran Hai Dang, CEO of Aviation Engineering Services Corporation (AESC), highlighted Vietnam’s unique advantages that bolster its potential in the global aviation supply chain. These advantages include its strategic geographical location, a skilled workforce, and an investment-friendly climate.
Vietnam’s Current Role in Aviation
Despite these favorable conditions, Dang acknowledged that Vietnam’s involvement in the aviation sector is “modest and unclear.” While a handful of domestic companies have embarked on manufacturing airframe components and testing engines, their contributions remain largely insufficient for creating a comprehensive aviation ecosystem. Currently, only about five Vietnamese firms are engaged in limited airframe part production, and engine manufacturing efforts are still at the nascent stage with only initial testing programs in place.
Gaps in Aviation Manufacturing
In vital sectors essential for a thriving aviation industry—such as aviation electronics, materials, rubber, and specialized coatings—Vietnamese firms are notably absent. This absence hampers the country’s ability to develop a robust supply chain. As Dang put it, the country is still lacking a unified national program for aircraft development, relying instead on scattered and uncoordinated initiatives. He stressed, “We must acknowledge that the country still doesn’t have a comprehensive plan for building a real aviation industry.”
Maintenance, Repair, and Overhaul (MRO) Challenges
On the topic of MRO, Vietnam only boasts two major facilities: Vietnam Airlines and AESC. Other players in the market operate on a much smaller scale and lack the necessary infrastructure and credentials to establish themselves as true MRO entities. This situation has arisen from market-driven developments rather than any coordinated national planning.
Dang pointed out that the focus remains heavily on basic manufacturing, while infrastructure and technology investments are sorely neglected. This oversight risks entrenching Vietnam in low-value segments of the industry, preventing a meaningful entry into the global supply chain.
Barriers to Certification
A significant hurdle in Vietnam’s quest to integrate into the global aviation sector is the need for proper certification from leading regulatory bodies like IATA, FAA (US), EASA (Europe), and AS9100. However, obtaining these certifications is fraught with challenges: they are costly, time-consuming, and yield uncertain returns on investment. Dang proposed a collaborative ecosystem that encourages domestic aviation businesses to pool their resources. This would allow companies to share certifications and reduce redundant competition as they work towards a cohesive national program for aircraft development.
The Vision for Aviation Development
Director of the Civil Aviation Authority of Vietnam, Uong Viet Dung, provided valuable insights, noting that the country operates 14 commercial and specialized airlines with a current fleet of 254 aircraft. This number is projected to grow to 400 modern planes by 2030. Vietnam’s aviation network spans 52 domestic routes and 211 international routes, indicating robust demand for local manufacturing and supply chain opportunities.
Dung remarked on Vietnam’s competitive advantages—such as low labor costs and evolving trends in the global aviation supply chain—as essential factors that could position the country as a major aviation hub in the Southeast Asian region. He emphasized the necessity for an aviation blueprint that defines the country’s industry roles and short-term development strategies while fostering the establishment of aviation and logistics centers.
A Call for Coordinated Action
A representative from the National Innovation Center (NIC) echoed the sentiments expressed at the conference, underscoring the need for a comprehensive strategy for the aerospace industry. Improved coordination among government agencies and businesses, alongside increased investment in research and development and infrastructure, is needed to catalyze growth.
Several actionable proposals emerged during the discussions:
- Developing Incentive Policies: Creating policies to attract investment into the aviation sector.
- Strengthening University-Enterprise Ties: Enhancing collaboration between educational institutions and businesses to foster talent and innovation.
- Defining Roles and Responsibilities: Clearly outlining the duties and functions of government bodies involved in aviation to ensure effective execution of strategies.
Conclusion
The conference was an important step towards recognizing the challenges and potential pathways for Vietnam’s aviation sector. By addressing these gaps—particularly in manufacturing, certification, and infrastructure—the country stands on the brink of becoming a significant player in the global aviation landscape.