At the roundtable conference “From Aspiration to Opportunity in Developing the Aviation Industry” held last week at the National Exhibition Center, Tran Hai Dang, CEO of Aviation Engineering Services Corporation (AESC), said Vietnam possesses significant advantages - strategic location, skilled technical labor, and an attractive investment climate - that position it well for deeper integration into the global aviation supply chain.

Despite this, Dang admitted Vietnam’s role in the aviation industry remains "modest and unclear." While a few domestic companies have started manufacturing airframe components and conducting engine testing, their output is minimal and insufficient to build a complete aviation ecosystem.

Currently, only about five Vietnamese companies are producing limited airframe parts. In engine manufacturing, only an initial testing program exists. And in vital sectors such as aviation electronics, materials, rubber, or specialized coatings, Vietnamese firms are nearly absent.

More critically, Dang pointed out that Vietnam lacks a unified national program for aircraft development. Only scattered initiatives exist, without a cohesive strategy. "We must acknowledge that the country still doesn’t have a comprehensive plan for building a real aviation industry," he emphasized.

Lagging in MRO and infrastructure

In aircraft maintenance, repair, and overhaul (MRO), Vietnam has only two key facilities - Vietnam Airlines and AESC. Other players remain small-scale, operating without the infrastructure or credentials required for true MRO status. These were market-driven developments rather than the result of national planning.

Dang noted that Vietnam's industry continues to focus heavily on basic manufacturing, neglecting infrastructure and technology investment. Without change, Vietnam will remain stuck in low-value segments and be unable to join the global supply chain.

One stark example: Vietnam cannot yet produce a bolt worth $100 used on commercial aircraft wheels - a component that could feasibly be manufactured with a $3–4 million USD investment in facilities. “It’s not about capability - it’s about commitment,” Dang said.

Certification remains a major barrier

To participate meaningfully in global aviation, Vietnamese companies need certification from major regulatory bodies, including IATA, FAA (US), EASA (Europe), and AS9100. However, Dang cautioned that securing such credentials is costly, time-consuming, and offers uncertain returns on investment.

He proposed a collaborative ecosystem, where domestic aviation businesses pool resources, share certifications, and avoid redundant competition. "We need a national aircraft development program with a core nucleus and a satellite network of supporting enterprises," he urged.

The call for an aviation industry blueprint

Uong Viet Dung, Director of the Civil Aviation Authority of Vietnam, noted that Vietnam now has 14 commercial and specialized airlines operating 254 aircraft. This figure is projected to reach 400 modern planes by 2030. Vietnam’s aviation network includes 52 domestic routes and 211 international routes, fueling robust demand and creating opportunities for local manufacturing and supply.

Vietnam’s low labor costs, ongoing shifts in the global aviation supply chain, and the rise of green aviation technology, sustainable fuels, and workforce training offer strategic advantages. According to Dung, these can support Vietnam in becoming a major aviation hub in the region.

"Vietnam needs to define its aviation industry and short-term development strategies, while forming aviation and logistics centers," he said. "We should aim to integrate into global OEMs like Boeing and Airbus, and one day, realize the dream of a 'Made-in-Vietnam' aircraft."

National innovation agency calls for coordinated action

A representative from the National Innovation Center (NIC) emphasized the need for a comprehensive aerospace industry strategy, including improved coordination between government agencies and businesses, and greater investment in R&D and infrastructure.

Other proposals included:

Developing incentive policies to attract investment
Strengthening ties between universities and enterprises
Clearly defining the roles and responsibilities of relevant government bodies

PV