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Opportunities for Hanoi businesses to join Boeing’s global supply chains
Hai Yen 11:46, 2023/11/08
Vietnam's aviation sector is experiencing the world's fifth-highest growth and ranks first in Southeast Asia.

Vietnamese aerospace companies, particularly those based in Hanoi, are being presented with the chance to become part of Boeing's supply chain.

 Delegates at the event. Photos: Khac Kien/The Hanoi Times

CEO of Vietnam-Japan Supporting Industries Development – Investment – Consulting Company Ishida Takayuki shared the view at a press conference on aviation quality management system requirements, jointly held by the Hanoi Supporting Industries Business Association (HANSIBA), Boeing, the Japanese Embassy in Vietnam, and other Japanese partners on November 7. 

The event is aimed at fostering collaboration in the manufacturing and provision of products and services between businesses and multinational corporations, as well as foreign direct investment (FDI) enterprises from developed regions such as the US, Europe, Japan, and South Korea.

Takayuki noted Vietnam's aviation sector has been experiencing substantial growth recently. However, for Vietnamese companies to integrate into the global supply chain of aircraft and aerospace manufacturing corporations, especially in the production of aircraft components and spare parts, local companies must meet specific technical and quality standards essential for the aviation industry, he added. 

In this context, Takayuki suggested that Vietnam's aviation industry has a significant opportunity to become part of Boeing's supply chain.

 Production of aircraft components for Boeing at MHI Aerospace Vietnam. Photo: Pham Hung/The Hanoi Times

Over the next two decades, an estimated 42,600 new aircraft will be manufactured. This includes over 32,400 mainline aircraft such as the B737 and A32X, as well as more than 7,400 wide-body airplanes such as the B787 and A350. The Asian region is expected to account for approximately 21% of the total. 

In particular, Vietnam's aviation sector has the fifth highest growth rate globally and ranks first in Southeast Asia, he said.

Currently, there are around five foreign-invested companies in Vietnam capable of participating in Boeing's production processes. Regrettably, there are currently no qualified Vietnamese enterprises that meet the standards required for Boeing production, Takayuki added.

"Boeing is committed to supporting Vietnamese businesses in becoming part of the product supply chain and producing essential aerospace components. At the same time, they also expressed the desire to organize workshops aimed at helping Vietnamese businesses understand how they can contribute to the supply of aerospace components," he continued.

Indeed, Vietnam's aviation industry has been on an upward trend for the past years. Matsumoto Izumi, the First Secretary of the Japanese Embassy in Vietnam,  pointed out that Vietnam possesses strengths in the production of electricity and household appliances. 

He cited   Onaga, a Japanese company that recognized the potential in Vietnam and made a strategic decision to set up a factory in the country specifically for the production of Boeing components. 

Izumi expressed his belief in the company's prospects for success in Vietnam and reiterated his commitment to further promoting strong collaboration among businesses from the United States, Japan, and Vietnam.

Vu Dinh Tuyen, the representative of the Hanoi Southern Supporting Industrial Park (HANSSIP), shared its support initiatives for aerospace enterprises operating within the Aerospace Components Production Complex (Techno Part) in this industrial park.

At the press conference, Onaga and other partners introduced the AS9100 certification – a widely adopted and standardized quality management system for the aerospace industry. 

This certification is indispensable for both domestic and foreign support businesses aspiring to participate in the global aerospace supply chain, particularly with corporations like Boeing.

With the AS9100 certification, businesses, whether local or international, gain the ability to engage in the global aerospace supply chain fully, encompassing multinational corporations in the field, including Boeing, Airbus, Lockheed Martin, and others.

Onaga Masaru, Chairman of Onaga, emphasized that Vietnam boasts numerous high-tech enterprises. However, it requires collective efforts and support from the governments of Vietnam, Japan, and the US to help local businesses participate in global aviation industry supply chains. 

“The key to success lies in resilience and an unwavering commitment to overcoming challenges, and there should be no room for giving up,” said Masaru.

To facilitate trade, enhance production collaboration, and facilitate   AS9100 certification, HANSIBA Chairman Nguyen Hoang emphasized that Vietnamese enterprises require a production certification that meets the necessary standards to engage in Boeing's production processes.

He outlined two primary approaches to achieve this goal. First, Onaga, Vietnam-Japan Supporting Industries Development – Investment – Consulting Company, and other Japanese partners would provide support to Vietnamese businesses in completing the necessary procedures for obtaining Production Certificates. However, this approach would require time for the verification of Vietnamese businesses. 

The second approach is for Japanese businesses to entrust aviation quality management certificates to Vietnamese businesses, enabling them to join    Boeing's production chain immediately.

Hoang also suggested that the Japanese side extend support to Vietnamese businesses in the following areas: establishing production processes compliant with aviation standards, training high-tech engineers and skilled workers, providing guidance on technology, production lines, and machinery by aviation industry standards, designing and constructing factories that meet the required standards for aviation industry product manufacturing, and collectively selecting products for production that align with the output needs of Vietnamese enterprises.

"Both parties should jointly advocate for preferential policies and support from the Japanese and the Vietnamese governments for Vietnamese enterprises and Japanese enterprises to invest in aviation sector production in Vietnam, particularly in the global aerospace industry and Boeing's supply chain," Hoang said.

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