Airbus eyes Vietnam for supply chain growth, aligns with green energy

Airbus, the European aerospace giant, is setting its sights on Vietnam for the expansion of its supply chain, as revealed by Hoang Tri Mai, general director of Airbus Vietnam, at the 2023 Vietnam-EU Trade Forum.

Mai acknowledged the challenges in finding suppliers that adhere to Airbus’s stringent standards but reaffirmed the company’s commitment to growing its presence in Vietnam. She emphasised the importance of suppliers embracing sustainable practices and reducing carbon emissions, aligning with the aviation industry’s shift towards green energy.

Mai highlighted Vietnam’s abundant biomass resources as a significant opportunity for the aviation industry’s transition to green energy. This potential positions Vietnam as a key player in the industry’s sustainable transformation.

The European Union stands as the sixth-largest foreign investor in Vietnam, with 2,540 projects and an accumulated registered capital of approximately USD1.23 billion as of October 2023. This investment accounts for 6.4% of Vietnam’s total registered foreign direct investment (FDI).

Ta Hoang Linh, head of the EU and Americas Market Department at the Ministry of Industry and Trade, underscored the significance of the EU-Vietnam Free Trade Agreement and the forthcoming EU-Vietnam Investment Protection Agreement. Linh noted that these agreements are crucial for attracting EU investment and technology transfer, paving the way for Vietnam’s economy to move towards a greener and more sustainable direction.

Gabor Fluit, chairman of the European Chamber of Commerce (EuroCham) in Vietnam, reported a substantial increase in EU investment in Vietnam. In 2022, the EU introduced 146 new projects worth USD15 billion, up from USD13 billion the previous year. A recent EuroCham survey indicated that more than half of its member companies plan to increase their investments in Vietnam by the end of 2023.

Vietnam as a strategic hub

Fluit highlighted Vietnam’s effectiveness in attracting sustainable FDI, positioning it as a strategic hub for global businesses, especially in high-tech manufacturing.

Reflecting a broader trend, Brazil’s aerospace leader Embraer is also strategically expanding its operations in Vietnam. This move is part of a larger ambition to enhance Brazil-Vietnam trade and technological partnerships.