New great opportunities for Vietnam’s aviation industry The Vietnamese aviation industry is developing strongly with the presence of big manufacturers’ names like Rolls Royce and Honeywell.  On July 2, Vietnam Airlines received an Airbus A350-900 XWB out of the 14 aircraft it ordered with the manufacturer. The aircraft model is well known for its luxury and fuel efficiency. The aircraft use an engine made by Rolls Royce, a famous brand from the UK. Just days later, Honeywell signed a memorandum of understanding with Vietnam’s Vietjet on the installation of Honeywell’s APU (auxiliary power unit) and avionics suites in the aircrafts that Vietjet will receive in the time to come. In 2014, Vietjet chose Honeywell as the supplier, manager and maintainer of the 131-9A APU engine for its 21 new A320s and A321s. “Like Intel, the presence of Rolls Royce and Honeywell in Vietnam will attract the world’s aviation companies to Vietnam, especially when Vietnam and the US have signed many cooperation agreements in the fields of aviation and energy,” an analyst commented. Vietnam has attracted foreign enterprises which make aircraft components such as Aerospace Vietnam (MHIVA) and Mitsubishi (MHI) from Japan. Meanwhile, Artus Vietnam, a French invested enterprise, makes electric motors, electric sensors, transformers and electronic boxes for dedicated aircrafts of Airbuses and Boeings. The cooperation with Vietnam Airlines will help the company approach many other air carriers here, according to Hoang Tri Mai, CEO of Rolls Royce Vietnam. Not only Vietnam Airlines, but Vietjet and Jetstar Pacific are also considering expanding their fleets, which will bring a potential market to Rolls Royce. Mai also said that Vietnam was one of the key markets which helped Rolls Royce expand its business in South East Asia. The great investment incentives offered by the government of Vietnam, plus the qualified labor force, are the great advantages that Vietnam has when attracting foreign investment. Rolls Royce opened a representative office in Vietnam in 2008 to seek business opportunities in civil aviation and maritime industries. In mid-2012, Rolls Royce put into operation a factory that makes deck equipment, underwater equipment and the equipment for seismic surveys used in the oil and gas industry. The factory in Ba Ria – Vung Tau province has investment capital of $25 million. Mai believes that Vietnam has great advantages to become a production base in Rolls Royce’s global production chain. While Rolls Royce provides engines used in Vietnam Airlines’ Airbuses, Honeywell provides the services of repairing and maintaining electronics units and APUs to the air carrier. Mai Trang Thanh, President of Honeywell Indochina, commented that the presence of companies like Honeywell will surely help develop Vietnam’s aviation industry. DNSG