Korean aviation parts supplier KP Aero Space to invest $20 mln in Danang city

KP Aero Space Vietnam, under South Korea’s KP Aero Industries, will invest $20 million in Danang Hi-Tech Park, said an executive.

Lee Jai Choen, president of the firm, made the statement at a working session last week between Danang authorities and local businesses. The firm, a supplier of components for Boeing and Airbus planes operated by Korean Air, received in-principle approval just a month after submitting the application and is expected to receive an investment certificate in early 2024, he added.

Regarding human resources, the firm has recruited graduates from the University of Science and Technology (under University of Danang), evaluating that a locally-trained workforce will fulfill the firm’s demands.

KP Aero Space Vietnam also expects to soon establish cooperation with businesses in Danang Hi-Tech Park to establish an aviation component supply chain, the executive highlighted.

The central coastal city of Danang licensed 104 new foreign-invested projects with total registered capital of $151.2 million in 2023, according to the municipal Statistics Office.

During the year, the coastal city also saw 42 FDI projects with capital additions of $20.2 million and 37 foreign investors spend $10.7 million purchasing shares in Vietnamese firms.

A major aviation investment in Danang Hi-Tech Park is $170 million invested by the U.S.-based Universal Alloy Corporation (UAC), a supplier of Boeing and Airbus. Entering operation in March 2020, the factory’s annual output is 12,470 tons of components. The firm reaped an export revenue of $25 million in 2021 and targets to increase the figure to $180 million from 2026.