First foreign-invested aero engine project starts operation in Vietnam
First foreign-invested aero engine project starts operation in Vietnam
Hanwha Group, one of the ten biggest corporations in South Korea, today inaugurated its aero engines factory at the Hoa Lac High-Tech Park in Hanoi, making it the first foreign-invested project of its kind in the Vietnamese aviation sector.
The grand opening ceremony attracted the participation of Deputy Prime Minister Truong Hoa Binh; Nguyen Van Binh, head of the Central Economic Commission; Phan Xuan Dung, Chairman of the National Assembly Committee for Science, Technology and Environment; Chu Ngoc Anh, Minister of Science and Technology; Lee Chul of the South Korean Embassy; as well as Hanwha Group president Kim Seung Yeon, and other high-ranking officials.
“By 2024, Hanwha Aero Engines is expected to have around 900 employees with an investment of $370 million. Thus, I hope Hanwha Aero Engines will be a symbol of technology transfer between South Korean firms and Vietnam, thus helping the country improve its technology capacity,” said Binh.
Kim Seung Yeon emphasised that the factory will be an important project, enabling Hanwha to become a global manufacturer of aero engines. The factory also signifies Hanwha’s long-term commitment to Vietnam.
Licensed in July 2017 and kicked off in September 2017, the $200 million factory is expected to contribute to training high-quality manpower for the city, creating thousands of jobs, and transferring technology to the country, thus increasing the two countries’ ties.
At present, around 40 technicians from the South Korean parent company are present at the factory to help train 200 Vietnamese technicians.
Hanwha Aero Engines is a unit of Hanwha Group, which last year made a revenue of $63 billion. In recent years, Hanwha has invested $1 billion in a number of projects in Bac Ninh, Long An, Hanoi, and Ho Chi Minh City which have greatly contributed to Vietnam’s development.
The South Korean group is seeking co-operation with Vietnamese private-run conglomerate Vingroup in finance, automobile spare parts, solar energy, and security. It is also expanding operations in the fields of insurance and asset management, with units such as Hanwha Techwin, Hanwha Aerospace, and Hanwha Energy.
As estimated, by 2022 Hanwha will invest nearly $4 billion in the aviation and national defence industry to expand its operations overseas and to increase global competitiveness.
