On 16/6, Sun Group and partners including HAECO, Japan Airlines, and Toyota Tsusho signed a joint venture agreement to develop a 360 million USD aircraft maintenance, repair, and overhaul (MRO) complex in Van Don. This project contributes to shaping the future of Van Don, as the destination is identified as a key area for Quang Ninh province to develop into a special economic zone.
According to a Sun Group representative, aircraft MRO is considered one of the highest value-added sectors in global aviation. However, specialized MRO capabilities in Asia are currently concentrated in traditional centers like Hong Kong, Singapore, or Malaysia. The high costs of transportation, labor, and infrastructure in these traditional MRO hubs can impact the profit margins of domestic airlines through each maintenance cycle.
Vietnam is recognized as one of the 10 fastest-growing aviation markets in Asia-Pacific, with an annual growth rate of approximately 8,1%. The commercial aircraft fleet is projected to increase from around 254 aircraft currently to nearly 400 aircraft by 2030. The demand for aircraft MRO in Vietnam could reach about 7,4 billion USD by 2030. This gap presents an opportunity for MRO centers in Vietnam.
According to the Civil Aviation Authority of Vietnam, the country's MRO capacity currently meets only about 23% of the actual demand. This means that 77% of the industry's aircraft maintenance costs flow abroad, consequently keeping a significant portion of Vietnam's aviation industry costs and value-added outside its territory.
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A rendering of the MRO complex in Van Don. Photo: Sun Group |
A Sun Group representative noted that beyond its strategic location connecting to Northeast Asia, Vietnam also possesses advantages in labor costs, a young workforce, and an attractive investment environment. As traditional MRO centers become increasingly expensive, these factors provide Vietnam with a significant competitive edge in the race to become a new destination for the aviation technical industry. "These advantages open opportunities for Vietnam to gradually participate more deeply in one of the highest value-added links of the global aviation industry," the representative stated.
In its initial phase, the project is capable of simultaneously accommodating four wide-body and two narrow-body aircraft, aiming to serve both the Vietnamese and regional markets. MRO is not a sector for short-term investments; it demands strict technical standards, substantial capital, high-quality human resources, and a long accumulation period. However, it is precisely for these reasons that it represents one of the highest value-added links in the aviation industry.
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Van Don international airport. Photo: Sun Group |
The MRO complex ensures the technical capacity for the aircraft fleet. This complex is not a standalone project but the next piece in an aviation ecosystem being gradually completed. Sun Group laid the foundation with Van Don international airport, followed by the operation and research development of airports in various localities such as Phu Quoc, Phan Thiet, Con Dao, and Rach Gia.
The group is progressively expanding its role from an infrastructure investor to a deeper participant in the aviation value chain. The international-scale MRO complex in Van Don will connect and enhance value for this entire ecosystem. The project will also improve the technical self-sufficiency of the group's own airline, Sun PhuQuoc Airways, optimizing operational efficiency and reducing reliance on overseas maintenance centers.
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An aircraft of Sun PhuQuoc Airways on the runway. Photo: Sun Group |
With the involvement of global aviation "pillars" such as HAECO, Japan Airlines, and Toyota Tsusho, the center is expected to become a new technical destination for domestic and regional airlines. This will retain more value-added for the economy, contributing to shaping an open future for Van Don, as the destination is identified as a key area for Quang Ninh province to develop into a special economic zone.
Van Don international airport, Vietnam's first private airport, was put into operation by Sun Group in 2018.
Thai Anh
