A factory in Đà Nẵng City's Hi-Tech Park. South Korean KP Aero Industries will soon start building an aircraft factory with an investment of VNĐ480 billion (US$20 million) at the park. — Photo courtesy of Long Hâu Corporation

ĐÀ NẴNG — South Korean KP Aero Industries will start building a 20,000sq.m factory with an investment of VNĐ480 billion (US$20 million) at the central city’s Đà Nẵng Hi-Tech Park, to produce and supply various parts for the aircraft industry.

A source from the city’s planning and investment department said that the project would start construction in the first quarter of 2024.

It said the factory was designed for producing aft body, APU door, MIC wing tip, raked wing tip, wing box, winglet, flap fairing support and aircraft metal fabrication facilities for Boeing 737, 787 and Boeing 737 Max in two phases.

The factory plans to begin the first investment phase in the fourth quarter of 2024 and reach full capacity manufacturing by the second quarter of 2029.

The Korean investor had earlier inked an agreement on support and investment promotion, education, manpower employment and research with partners including the Đà Nẵng Hi-tech Park and Industrial Zones Authority; Đà Nẵng University of Science Technology under Đà Nẵng University and Korean Air in May of 2023.

KP Aero Industries produces and supplies parts for Boeing, Airbus and Korean Air company.

This is the second investment project in aviation and aerospace technologies in the park, after Đà Nẵng Sunshine Aerospace under the Universal Alloy Corporation from the US, put into operation in 2020.

South Korea ranked in the five top foreign investors in the city, with 233 projects worth US$378 million in the ICT and hi-tech industries.

South Korea’s LG Electronics started building its R&D centre, the second in Việt Nam, in Đà Nẵng, while Samsung began establishing the Samsung Innovation Campus (SIC) at the city’s Duy Tân Private University, and supporting two businesses – Trung Nam Group and Tân Long Paper and Package Company – in building the first smart factories in the city.

Partners from Việt Nam and Korea boosted co-operation and development of Artificial Intelligence (AI) technology toward making Đà Nẵng a centre of global AI innovation.

The Việt Nam-Korea Friendship Information Technology University began training the first 500 semiconductor and chip design engineers in central Việt Nam in 2024-27.

To date, the Hi-Tech Park has 28 projects, of which 12 are FDI projects (worth total $702.24 million), and 16 domestic projects at a total investment of more than VNĐ7 trillion ($280 million). —  VNS