Boeing Plans to Invest in Aviation Supply Chain in Vietnam

Boeing’s Senior Vice President has announced that the company plans to invest in the development of an aviation parts and equipment supply chain in Vietnam.

This information was revealed by Steve Biegun, Senior Vice President of Boeing, during a meeting with Vietnamese Minister of Industry and Trade Nguyễn Hồng Diên on the sidelines of the APEC Ministers Responsible for Trade Meeting and Indo-Pacific Economic Framework (IPEF) Conference in the United States on May 26 (local time).

Boeing has maintained a representative office in Vietnam since 2021. According to Steve Biegun, the company is set to expand its collaboration with Vietnamese airlines and engage in specialized areas such as helicopters, air transportation, and the development of an aviation supply chain in the country.

Current Vietnamese Suppliers in Boeing’s Supply Chain

Currently, some suppliers in Vietnam are involved in the production of components for Boeing’s commercial aircraft, including aircraft interiors, composite materials, and small parts. However, these components remain of relatively low added value.

Most companies participating in Vietnam’s aerospace supply chain are foreign direct investment (FDI) enterprises, primarily from the United States, Japan, and South Korea.

To enhance local supplier participation, Minister Nguyễn Hồng Diên urged Boeing to accelerate its efforts in developing Vietnamese suppliers by:

• Implementing supplier development projects
• Conducting market assessments
• Deploying expert training programs
• Facilitating technology transfer when local enterprises meet required standards

Strengthening Vietnam’s Role in Boeing’s Global Supply Chain

During the meeting, Minister Nguyễn Hồng Diên emphasized that Vietnam has developed a strong mechanical engineering sector, with several corporations capable of becoming potential partners for Boeing in the future.

To support this initiative, Vietnam’s Ministry of Industry and Trade is willing to collaborate with strategic partners like Boeing to:

• Develop a sustainable aviation support industry in Vietnam
• Enhance Vietnamese suppliers’ capabilities
• Gradually integrate Vietnamese firms into Boeing’s global supply chain

By doing so, Boeing can accelerate its strategic objectives while helping Vietnamese manufacturers expand their presence in the global aerospace industry.

Boeing’s Presence in Vietnam Since 1995

Boeing has been operating in Vietnam since 1995 and has made significant contributions to Vietnam’s aviation sector, including:

• Providing technical support in both defense and commercial aviation
• Assisting Vietnam Airlines in obtaining direct flight permits for the non-stop Ho Chi Minh City – San Francisco route

With Boeing’s commitment to expanding its supply chain operations, Vietnam could play a more prominent role in the global aerospace manufacturing sector in the years ahead.