Factory Z131, a defence and security business of the General Department of Defence Industry, is tasked with research and development of some military weapons, ammunition, and equipment. It also produces commercial products, including industrial explosives, mechanical, plastic products, etc., for domestic consumption and export. In recent years, the missions of establishing and developing the defence industry and military building as well as national construction and defence place higher requirements for the Factory. Meanwhile, factors that enable its production are still lack of synchronicity. Most of the production lines and technology have been outdated. There are potential risks associated with the manufacturing process. In a market economy, explosive products, precision-engineered products, plastic products, etc., face fierce competition. The price of inputs is always on the rise. The supply chain of some materials from foreign countries is not stable. The Factory has a big manufacturing workforce, thus facing the increasing pressure of creating jobs and income for employees.

Given this context, the Factory Party Committee and Board of Directors focus on leading and directing synchronous adoption of solutions such as strengthening of organisational structure, enhanced professionalism in production and management, implementation of intensive investment projects to increase the manufacturing capacity, development of new business sectors and markets, brand building, and so on. Among these solutions, technological innovation, increased application of scientific achievements, and leverage of technology innovation initiatives in the manufacturing process are regarded as the breakthroughs and most important solutions.

On deeply grasping resolutions and directives of the Party, State, Central Military Commission (CMC), and the Ministry of National Defence (MND) on science and technology, most notably the Resolution No. 06-NQ/TW, dated 16 July 2011 of the Politburo (11th tenure) on “Building and developing the defence industry through 2020 and beyond”, Resolution No. 791-NQ/QUTW, dated 30 December 2012 of the CMC on leading scientific, technological, and environmental work in the military through 2020 and beyond, in recent years, the Factory has concentrated on stepping up the automatic mechanics and technological innovation program. This is a vital condition that provides technical, technological foundation for production demands and development of the defence industry in the new situation. To realise the “shortcut” motto, the Factory has proactively sent many delegations abroad to learn about the advancement of technology and invited foreign experts to come to its place to introduce new technologies. On the basis of these interactions, the Factory selects the providers of technology to produce defence and economic products; actively mobilises resources and invests in upgrading infrastructure, modernising equipment and technologies according to standards of the United States, Europe, and Japan. Given its high resolution and synchronous measures, the Factory has recently completed many important intensive investment projects, meeting requirements of quality and progress, especially the technologies used for manufacturing new types of weaponry, industrial explosives, mechanical and plastic products, auxiliary products for industrial and civilian use, etc., making vital contribution to enhanced ability to conduct research, develop prototypes, manufacture and assess product quality, and protect the environment.

Leaders of the factory award its outstanding employees

Apart from investments in acquisition and transfer of modern technology lines from foreign countries, the Factory attaches importance to research and application of scientific projects; leverage of initiatives and technological innovation to improve production process, technological process, and operation of machines aimed at increasing labour productivity, production and business efficiency. To ensure that scientific research activities are carried out in the right direction and able to make full use of collective intelligence of engineers, technical cadres and staff, the Factory has developed and promulgated the Regulation on managing scientific and technological activities, which contains preferential policies and prioritises financial investment in scientific research, application of technology, leverage of initiatives, and technological innovation to stages of the production process. There needs to intensify reform of management regulations and ways of conducting scientific, technological activities to bring the scientific research activity into depth and substance. During the implementation process, the Factory closely combines unified management of the Board of Directors and power devolution, which serves to give collectives and individuals greater autonomy, especially the role of project leaders. The process and method to select projects are reformed in the direction of “effectiveness, applicability of the project, and using the end product as criteria for evaluating research quality.” More importantly, the Factory has applied the Regulation on regular innovation according to Kaizen Methodology and carried out the 5S Program since 2018. Accordingly, every year, the Factory requests its departments and units to propose research projects on application of science, technology, and technical innovation on the basis of practical situation before approving and allocating budget for implementation. The initiatives selected for application all have relevant records, which are investigated, noted, rewarded appropriately to timely inspire the creative spirit of individuals and collectives. Given this approach, over the past few years, the Factory has researched, conducted joint research, and successfully applied tens of scientific, technological projects and technological innovation initiatives in various fields to streamline the production process in order to gain high economic efficiency of social significance, improve the working environment and safety of workers.

Factory Z131 is one of the biggest businesses of the General Department of Defence Industry, thus having a diversified industrial, occupational structure and a huge workforce. Besides making technological breakthroughs, the Factory attaches importance to application of science and technology to building of “digital business” and “smart factory” to promote its production efficiency. Currently, the Factory is applying an advanced, modern method of management, which pays employees according to the “3P” principle; applies the ISO 9001:2015 quality management system, the ISO 14001 environmental management system, and the ISO 45001 occupational health and safety management system; uses work management software to connect data from production teams to departments and units. Consequently, quality of products is ceaselessly increased and receives positive response of domestic and international markets.

It can be affirmed that synchronous implementation of measures to promote technological innovation, application of scientific projects, leverage of initiatives for technical innovation in production, and digital transformation has resulted in drastic changes in the manufacture and business of the Factory. Basically, key production phases at the Factory are fully automated or semi-automated, especially the dangerous, harmful ones. Therefore, the labour productivity increases and product quality is improved, which is capable of meeting strict technical standards of technologically advanced countries in the world. Many economic, defence products have affirmed their quality, prestige and become strong brand names at home and abroad. The EME-31 trademark of the Factory has been certified as a famous trademark and a Vietnamese competitive trademark for fourth consecutive years from 2018 to 2021 by Viet Nam Intellectual Property Association. The total turnover of the Factory was over 11,623 billion VND in the 2012 – 2021 period, an average rise of 4.96 per cent each year. The total turnover from economic production was 5,934 billion VND, accounting for 51 per cent of the Factory’s total turnover. Profit from economic production made up 64.77 per cent of the total profit. Turnover from economic production in the 2017 – 2021 period grew steadily, averaging 5.66 per cent per annum. In 2021, the average income was about 12.869 million VND each month.

Bringing into play its outcomes, in the coming time, the Factory continues to divert all of its resources into promoting economic production and strengthening defence production capacity; gradually invests in building the smart factory and modern, advanced, dual-use technology lines; streamlines its organisation in accordance with development level. In the short term, the Factory will actively participate in scientific, technological programs to develop weapons and enhance quality of weapons according the Resolution No. 08-NQ/TW, dated 26 January 2022 of the Politburo (13th tenure) on stepping up the development of defence industry through 2030 and beyond, the Resolution No. 820-NQ/QUTW, dated 17 December 2021 of the CMC on leading the military’s production, economic development in association with national defence by 2030. It also makes every effort to successfully carry out new research and development projects; attaches importance to improving existing technology lines; designs and develops specialised equipment itself to make breakthroughs in creating semi-automated and fully automated production lines. The Factory is committed to relocating the production lines of industrial explosives to streamline its production process and ensure safety. Gradual investments are made in production lines and equipment to improve plastic, mechanic production capacity and quality of economic, defence products. Attention is paid to development of human resources, especially the high-quality ones, which contributes to successful implementation of the strategic goal of building Factory Z131 into a Centre of Defence Industry in the North, capable of researching, developing, and manufacturing high-tech weapon systems to meet requirements of military building and national defence.

Senior Colonel, Doctor NGUYEN HONG SON, Factory Director