South Korean aero parts supplier KP Aero Industries plans to invest $20 million in establishing a factory in Vietnam to assemble components for Boeing aircraft.

The Management Board of the Da Nang High-Tech Park and Industrial Parks recently issued an investment license to KP Aero Industries to invest in the KP VINA Aircraft Component Factory project at the Da Nang High-Tech Park.

With total investment of $20 million, the project involves manufacturing, processing, and assembling components for aircraft, including auxiliary power unit doors (APU doors), MIC tips, wing boxes, winglets, and flap support fairings for Boeing 787 and Boeing 737 MAX aircraft.

The move aims to extend the manufacturing footprint of the US aviation giant to Vietnam, and marks the second aerospace investment at the Da Nang High-Tech Park, following a project from the UAC Vietnam LLC.

According to a representative from KP Aero Industries, it plans to commence construction of the facility in early February and targets full operational status by year’s end. The factory is expected to positively impact Da Nang’s socio-economic development, especially given the South Korean company’s extensive operational experience and partnerships with leading aviation entities like Boeing, Airbus, and Korean Air.

Da Nang anticipates becoming a leading hub and establishing an aerospace technology complex. This endeavor seeks to draw interest from aviation companies and conglomerates globally to assess the investment climate, embark on projects, and foster technology transfer within the aviation sector.

The Management Board of the Da Nang High-Tech Park and Industrial Parks greenlit 19 new projects last year with capital totaling $258.6 million. Its industrial parks have attracted 526 projects to date, with capital amounting to $3.413 billion.

Da Nang High-Tech Park’s goal this year is to attract a minimum of three investment projects with capital in the vicinity of $200 million. The focus will be on three primary sectors: aerospace technology, semiconductor manufacturing, and high-quality healthcare.