According to local authorities, KP Aero, a South Korean aviation industry supplier producing components for Boeing aircraft, plans to invest USD 20 million in establishing a factory in central city of Danang.
This move is anticipated to contribute to the expansion of Boeing’s supply chain within the country. Boeing has expressed its readiness to enhance its manufacturing presence in Vietnam, where it currently collaborates with seven “sub-tier” suppliers – businesses that provide components to its primary suppliers.
Additionally, in September 2023, Boeing entered a preliminary agreement with Vietnam Airlines for the purchase of 50 Boeing 737 Max 8 jets. Formal authorization for KP Aero’s investment of USD 20 million in Vietnam is expected to be granted soon, as stated by authorities in Danang. A Vietnamese official mentioned that this investment will be directed towards the city’s high-tech industrial park.
City officials issued an investment license to KP Aero Industries during an investment conference called “Meet Da Nang 2024”, marking the second large aviation-related project in Da Nang. The other project, situated at the Da Nang Hi-Tech Park, involves a USD 170 million investment from Universal Alloy Corporation (UAC) which is a US-based supplier of components to Boeing and Airbus. Starting from 2020, the factory produces an annual output of 12,470 tons of components.
(Sources: The Jakarta Post, VnEconomy)
