Da Nang attracts investment capital in aerospace technology

Nguyễn Hoàng |

Da Nang is becoming a destination for international aerospace investors, with a series of million-dollar projects from UAC (USA) and KP Aero (Korea).

Aerospace supply chain forms in Da Nang

Speaking at the conference "Da Nang - New space, new motivation, striving for integration and development" on September 26, Mr. Ho Ky Minh - Vice Chairman of the People's Committee of Da Nang City - said that the wave of aerospace industry enterprises is present and expanding operations in the city, typically UAC and KP Aero.

This trend goes hand in hand with a deep integration strategy, proactive economic diplomacy and the development orientation of high technology - semiconductors - AI, creating a foundation for the formation of a high-tech supply chain (CNC) right in the Central region.

Thu tuong Chinh phu Pham Minh Chinh tham quan
Prime Minister Pham Minh Chinh visited the Sunshine Aircraft Component Factory - Da Nang of UAC Group (USA) in 2022. Photo: DHFizA

Of which, the Da Nang Sunshine project of UAC Group (USA), with a total investment capital of 170 million USD, area of 170,000m2 - is one of 8 projects awarded by the city with an Investment Certificate at the Spring 2019 Seminar. The investor is Universal Alloy Corporation Vietnam Co., Ltd., located in CNC Da Nang Area.

UAC is the world's leading manufacturer of aircraft components, supplying Boeing, Airbus, Embraer, Bombardier and related supply chains; often performing long-term contracts for Boeing 787/777/767/737, Airbus A350/A330/A320/A220/ATR, Embraer E195, Bombardier CRJ. 100% of products produced in the CNC Da Nang Area are exported to global aerospace markets.

Ban Quan ly Khu Cong nghe cao Da Nang. Anh: DHFIZA
Da Nang High-Tech Park Management Board. Photo: DHFizA

The second aerospace project invested in the CNC Area of Da Nang is KP Vina Aviation Component Factory of Korean investor - KP Aero IndustriesKP Vina - KP Aero Industries (20 million USD).

The project was granted an investment registration certificate at the end of 2024. Goals: manufacturing, processing, assembling aircraft parts such as the auxiliary engine door (APU Door), MIC tip, wing box (Wingbox), winglet, wing support cluster (Flap fairing) for Boeing 787 and Boeing 737 Max lines.

Why did the "big guys" choose Da Nang?

Da Nang leaders believe that the stable foreign - consular environment is the reason why "big guys" in the aerospace sector in particular and foreign high technology choose Da Nang as the place to "build a team".

The city has 5 Consulates General, 2 Honorary Consulates, many international business associations (AMCHAM, EUROCHAM...), about 70,000 foreigners living and working, reflecting the appeal of a safe and friendly city, quickly handling procedures with foreign elements.

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The Da Nang Department of Foreign Affairs exchanged a cooperation agreement with its Korean partner on September 26. Photo: Nguyen Hoang

With economic diplomacy as a pillar, in the period of 2021-2025, Da Nang has licensed 797 FDI projects (more than 1.07 billion USD), with an estimated import-export turnover of 41 billion USD; strongly mobilized ODA and non-governmental aid, consolidated "soft infrastructure" that high-tech corporations attach importance to.

In addition, the Nam Giang - Dac Ta Ooc international border gate pair will open a short trade route on the East - West Economic Corridor, supporting logistics for the precision manufacturing and aerospace industries.

The presence of UAC, KP Aero and microchip design names such as Marvell, Synopsys creates a resonance effect from the design - materials - accuracy processing - inspection, helping to diversify on-site supply chains, upgrading management - technical standards according to international aviation standards. A series of investment-connecting events (international Financial Week, Semi-Leading Day, local - partner connection forum) are helping Da Nang position its brand as a destination for high-tech investors, including aerospace.

Nguyễn Hoàng
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