South Korea-based aero parts supplier KP Aero Industries is to invest $20m in a Vietnam plant to assemble plane components for Boeing.
In an interview with Reuters, Lee Young-su, a senior official at KP Aero, said his company would invest the money through 2028 to enable the factory to manufacture Boeing 787 and 737 plane components.
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According to a media statement published today (24 January), the authorities in the city of Danang will award KP Aero the authorisation later this week to make the investment in the country.
The boost in manufacturing comes on the back of a difficult beginning of the year for Boeing. On 5 January, an Alaska Airlines Boeing 737 Max 9 made an emergency landing after one of its cabin doors blew off mid-flight, leaving a gaping hole in the plane’s fuselage.
The company’s share price fell from $249 on 5 January to $200 on 16 January before slightly recovering to $211.50 at the time of reporting.
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The planned expansion through KP Aero Industries in Vietnam comes almost two years after Boeing opened a new office in Vietnam’s capital Hanoi in August 2021. The move aligns with the company’s objectives to boost production for its commercial aeroplanes.
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By GlobalDataVietnam is increasingly becoming a popular investment destination for many multinationals looking to establish a presence in Southeast Asia. As a result, between 1 January and 20 October, the government in Hanoi attracted over $15.29bn in 2,608 new FDI projects.
