The supporting industry for the sector remains small and underdeveloped in Vietnam, failing to keep pace with international competitors. (Photo: VNA)
On August 15, the Vietnam Aviation Investment Programme in Ho Chi Minh City withdrew key factors explaining the imbalance of national aviation development and high dependency on foreign technology. As such, the aviation support industry regarding research, design, manufacturing, maintenance, and ground equipment has been under-noticed while holding promising potential for local job creation.
Stated by a domestic airline executive, Vietnam’s aviation support industry copes with this underdeveloped situation due to insufficient incentive mechanisms to encourage local business involvement, creating continuous reliance on imported technology. He explained that major components such as brakes or tires, engines, or aircraft are from abroad and drive up the airlines’ costs with limited control of uniform global price standards. Expenses for leasing and maintenance have already consumed nearly half of the cost structures.
Currently, Vietnam only presents its domestic craftsmanship with two companies- Vietnam Airlines Engineering Company and the private Aircraft Engineering Services Company. The situation appears to be identical for ground aviation support as air traffic management and navigation electronics by ATTECH are in limited stock.
Tran Thi Thai Binh, Head of the Air Transport Economics Department at Vietnam Aviation Academy, underlined the importance of skilled personnel. Resulting from an increasing requirement for international qualifications in the workforce, the nation is dependent on foreign expertise in technical and management roles. Vietnam can target future strategies on international training collaboration for local engineers and managers, in keeping up with global standards
Vietnam’s Civil Aviation Authority data summarizes 222 registered aircraft and 203 commercial planes. Projections indicate that by 2050, the country’s 22 airports will increase to 33, potentially serving 300 million passengers annually.