KAI joins hands with VTX to enter Vietnam's helicopter market

Korea Aerospace Industries Co. (KAI) on Friday signed a preliminary agreement with Vietnam’s Viettel Aerospace Institute (VTX) to cooperate in developing and producing helicopters, which is expected to pave the way for KAI’s advance into Southeast Asia's aircraft market.

KAI said its Chief Executive Kang Goo-young signed a memorandum of understanding with VTX’s counterpart in Hanoi. Kang joined the business delegation of South Korean President Yoon Suk Yeol, who paid a state visit to Vietnam on Friday.

To specify their partnership, the two companies will establish working-level and review committees. 

VTX is an aerospace R&D unit of Viettel Telecom Group, Vietnam’s largest telecom service provider. The country plans to build six new airports by 2030 to meet the air travel growth.

KAI holds more than 10 proprietary helicopter platforms, including marine and coast guard aircraft. It is stepping up efforts to sell its Surion helicopters to Southeast Asian countries.

KAI has signed a string of deals to sell FA-50 and T-50 fighters to Poland, Malaysia, Indonesia and Slovakia. But it has not yet exported the Surion.

Last year, the company inked a $3 billion contract to export FA-50 fighters to Poland.

Write to Byung-Uk Do at dodo@hankyung.com

Yeonhee Kim edited this article.