According to the Government’s official website, Hanoi City, on the morning of February 16, Chairman of the Hanoi People’s Committee Tran Sy Thanh led a delegation to visit Hanwha Aero Engines Company. During the visit, CEO Nam Hyung Wook stated that Hanwha Aero Engines plant has been invested with a total capital of $200 million and plans to expand investment to $260 million on a total area of nearly 97,000m2 in Hoa Lac High-Tech Park to produce aircraft engine components.
In 2023, the company expects to achieve revenue of about $140 million (over VND 3,400 billion), and it is expected to increase production of high-tech products by about 40% in 2024, which will lead to a revenue growth of about 17% for the company.
From explosive to aerospace, green energy, finance, and retail
The Hanwha Group was established in 1952 and is a leading enterprise in the explosives industry in South Korea. After many years of development, the conglomerate is currently divided into three major divisions, providing services related to aerospace, materials, green energy, finance, and retail.
Hanwha cooperates, invests, and builds factories across markets in most continents with 80 branches in South Korea and 469 other branches worldwide. In 2023, Hanwha achieved a total revenue of $65.3 billion in all fields, total assets of nearly $180 billion, and ranked 296th in the Fortune Global 500 rankings.
The conglomerate invests in the aircraft engine and components manufacturing industry through its subsidiary Hanwha Aerospace. Hanwha Aero Engines Co., Ltd. is also the entity investing in the first aircraft engine manufacturing plant in Vietnam.
Since its establishment in 1977, Hanwha Aerospace has been the leading company in the aerospace industry in Korea. The company focuses on producing various types of engines for spacecraft, aircraft components… and also serves two other sectors: maritime and defense.
The company is a major partner of 3 leading companies in the aircraft engine manufacturing industry, including GE, Pratt & Whitney, and Rolls-Royce, and also manufactures important rocket parts for projects in Korea.
In 2021, Hanwha established Spacehub to maintain its leading position in the space industry, with the goal of developing ultra-small and lightweight satellites for various applications in the future. At the end of 2022, Hanwha continued to develop an integrated system for the KLSV – II space program, once again asserting the top position of the company in the aerospace industry in Korea.
Hanwha in Vietnam: From finance – insurance, solar energy to the first aircraft engine manufacturing plant
Hanwha has been present in Vietnam since 2009 and is well-known for providing financial and insurance services. In addition, the company has invested in 2 major projects in Vietnam, including a solar power plant in Long An with a capacity of 100 MW and a security equipment manufacturing plant in Bac Ninh. Both projects have an investment of about $100 million, marking the first industrial projects of the conglomerate in Vietnam after early penetration into the financial sector.
However, this company truly made a name for itself in our country starting in 2017, when the Hanwha Aero Engines Factory project was granted investment registration by the Management Board of Hoa Lac High-Tech Park. The first project of an aircraft engine manufacturing plant in Vietnam with a total investment of $200 million (and can be expanded up to $260 million – as shared by the CEO) was completed in phase 1 and put into operation at the end of 2018, started phase 2 in October 2019, and completed in 2022.
Hanwha’s factory in Hoa Lac (Photo: Hoa Lac Hi-Tech Park Management Board)
With investment from leading South Korean companies, from Samsung, LG to Hanwha, Vietnam has a great opportunity to promote the development of high-level industries in the coming years. Hanwha’s aircraft engine plant project not only promotes the development of this high-quality industry in the future, with decades of experience from Korean partners but also serves as a prerequisite for other conglomerates from Korea to continue pouring capital into our country in other fields.
