In spite of numerous difficulties, Factory Z125 has been promoting the research, development, and production of defence and economic products as one of its important breakthroughs, with synchronous and effective solutions. Through these efforts, the Factory continues to affirm its prestige and position of a heroic unit in the new period of development.

Working visit by Sr. Lt. Gen. Pham Hoai Nam, Deputy Minister of National Defence to the Factory in June 2026

Factory Z125, under the General Department of Defence Industry (GDDI), was established on 7 September 1966. Over 60 years of development from an artillery repair workshop, generations of cadres, soldiers, workers, and employees have always maintained solidarity, creativity, and perseverance in overcoming difficulties, building the Factory into a core defence industry establishment capable of manufacturing and repairing various types of weapons for the Military’s training and combat readiness and participating in the design, completion, and production of new defence products. The Factory has also produced economic products, making a worthy contribution to the victories and glorious tradition of Vietnam’s defence industry in the cause of national liberation, construction, and protection. In recognition of these achievements, in October 2011, it was awarded the title of Hero of the People’s Armed Forces by the Party and State, together with many other noble awards.

In recent years, alongside opportunities and favourable conditions, the Factory has faced numerous difficulties and challenges, particularly rising prices of materials and imports, disruption to supply chains due to epidemics, geopolitical instability, and armed conflicts in various parts of the world, and limitations in some production lines and equipment. Against that backdrop, the Factory’s Party Committee and Board of Directors (BOD) have made breakthroughs in the research, design, development, and production of defence and economic products. The Factory has actively exploited and expanded markets, while proactively investing in technological solutions and gradually modernising production lines and equipment towards greater automation in order to improve production and business efficiency and guarantee employment and income for its staff members.

First of all, the Factory has resolutely adjusted its organisational structure and workforce properly, focusing on improving the quality of its human resources. Grasping Directive 2626/CT-CNQP, dated 22 April 2020, by the Director of the GDDI on strengthening labour management and utilisation at one-member limited liability companies under the GDDI, the Factory has reviewed and rearranged its organisational structure, reducing its indirect and supporting workforce from 43% to 38%, establishing a staffing quota, maintaining sufficient personnel for defence production lines according to decisions of the General Staff of the Vietnam People’s Army (VPA). While accelerating automation and minimising the workforce required at different stages of production lines, in a bid to build smart workshops, the Factory has attracted and developed high-quality human resources, linked with proper assignment, delegation, and devolution, promoting the capabilities of all-level managers in its operations.

Staff members of the Factory at the first Military Trade Union's Creative Labour Awards

Closely adhering to current regulations and its operational realities, the Factory has proactively carried out personnel recruitment, training, and professional development, linked with the planning and utilisation of human resources, particularly high-quality human resources in the research, design, and manufacture of new, high-tech weapons and technical equipment. Every year, it organises training, retraining, and refresher courses to improve the knowledge, management skills, and soft skills of all-level managers as well as the capabilities and proficiency of technicians and employees in operating new, high-tech equipment, thereby step by step building a pool of cadres, technicians, and workers with a modern industrial style, self-discipline, and strict observance of the law, military discipline, and safety regulations. It has intensified the work of traditional education, building a working environment characterised by unity and mutual support, developing and completing appropriate salary and welfare regulations, ensuring increasingly better living conditions for its staff members to enable them to devote themselves to their unit and turn them into a source of internal strength for its sustainable development.

To develop and manufacture various types of weapons in response to the VPA’s modern combat requirements, the Factory has stepped up the application of science and technology and actively invested in upgrading production lines and equipment. The Factory Party Committee has issued Resolution 95-NQ/ĐU, dated 25 July 2023, on leading science and technology work towards 2030 and beyond, with science and technology being seen as the core driving force and breakthrough solution for making a leap forward, requiring the coordinated, focalised implementation of scientific and technological research under a specific road map relevant to VPA’s strategy for developing weapons and technical equipment. Based on the Resolution, mechanisms, policies, and regulatory documents have been reviewed, supplemented, and completed, particularly regulatory documents related to the management and implementation of scientific and technological research topics and tasks. While actively recommending higher authorities to increase funding, the Factory has effectively used its science and technology development fund, distributing maximum resources for scientific research tasks linked with the objective of developing new, advanced products with high technological content. In the 2020 - 2025 period, the Factory undertook 24 research projects and tasks, including 1 Ministry of National Defence-level pilot project, 3 GDDI-level research projects and tasks, and 8 grass-roots-level research projects and tasks; it also coordinated with research institutes within the VPA to conduct 12 research projects at various levels. Those research and prototype-production projects have been applied to production, contributing to improving product quality. 7 weapon products have been assigned for mass production and introduced into service in military units, including numerous new, modern, high-tech weapons and technical equipment integrated onto mobile platforms. Notably, the Factory has completed the research, production, and handover of 18 weapon systems mounted on XCB-01 infantry fighting vehicles and PTH-01 self-propelled artillery systems; it has also undertaken the research, design, and manufacture of T-1 light tanks, while mastering the technology for manufacturing artillery barrels up to 122 mm in calibre.

Alongside in-depth investment projects and “dual-use, modern” production line development, in order to improve its production capacity and product quality, better its staff members’ working environment and conditions, and minimise safety risk in production, the Factory has effectively mobilised its internal strength and promoted initiatives and technical improvements. Over the past five years, more than 330 initiatives, solutions, and projects have been recognised and applied in production. These have helped resolve bottlenecks in production, generate economic benefits, increase productivity, and improve product quality, with the estimated value of the benefits exceeding VND 15 billion.

Producing ARG-330 band saws for export

In response to the stringent technical and tactical requirements set for defence production and intense competition in economic production, the Factory has focused on improving corporate governance capabilities and managing production in a scientific, flexible manner. The BOD has reviewed, amended, supplemented, and promptly issued corporate governance regulations, stringently maintaining technological discipline and product quality management, introducing advanced, modern corporate management measures according to the Kaizen-5S model, applying a quality management system in accordance with ISO 9001:2015, thereby enabling the Factory’s command to make accurate decisions based on real-time data. Occupational safety and hygiene and fire and explosion prevention and control have been strictly ensured, with no occupational accidents occurring, thus creating a safe, disciplined, standardised working environment.

Defence production is the Factory’s central and consistent task. Therefore, the Factory has attached importance to developing production and support plans in a scientific fashion, maximising available resources, organising production towards “discipline, flexibility, efficiency”, promptly resolving arising issues, successfully completing this important task using budgetary resources. Since 2020, it has manufactured 11 types of weapons and equipment, with over 118,260 defence products, meeting schedule and quality requirements, ensuring absolute safety. Most products have been improved in terms of quality, technical and tactical performance, design, and appearance, highly evaluated by acceptance councils, and provided for training and combat readiness operations across the entire VPA, with no safety incidents caused by technical or manufacturing defects.

In economic production, regarding product quality and delivery schedules as a vital factor for an enterprise, the Factory has maintained good relations with traditional partners, stepped up trade promotion activities, developed new products, and integrated more deeply into export goods supply and production chains. The effectiveness of economic production has not only generated revenue but also contributed to creating additional resources for investment in equipment and improving staff members’ working conditions and welfare. Thanks to the resolute, synchronous adoption of the above solutions, the effectiveness of the Factory’s research, development, and production of defence and economic products has continuously improved as a significant contribution to the development of Vietnam’s defence industry and the cause of Fatherland construction and protection.

On the occasion of its 60^th founding anniversary, the Factory was awarded the Second-Class Fatherland Protection Order by the Party and State. This is a great source of pride and encouragement for every officer and employee of the Factory to continue upholding its tradition, surmounting difficulties, and successfully fulfilling all tasks in the new period.

Sr. Col. NGUYEN CAO CUONG

Director of the Factory