Established on 16 June 1965 as a defence and security enterprise under the General Department of Defence Industry, Factory Z115 is tasked with producing weapons and equipment for training and combat readiness of the Military; designing, manufacturing, and transferring weapon production lines according to the industrial mobilisation programme. At the same time, it also produces a number of products serving civil needs, such as: industrial explosives, chemical products and precision mechanics, etc.

In recent years, besides opportunities and advantages, the Factory has encountered many difficulties and challenges resulted from the high material prices, the scarity of input materials due to epidemics and conflicts in some areas, the outdated technology of some production lines, the shortage of qualified human resources in some specific fields, the decreased orders for traditional defence products, and the fierce competition of the market economy, etc. Fully aware of this, promoting the tradition of solidarity, proactiveness, creativity, self-reliance, self-sufficiency, overcoming the difficulties, the Party Committee and the Board of Directors of the Factory have focused their leadership and direction on the improvement of corporate governance capacity with advanced management solutions. Besides, they have actively exploited and expanded the market and promoted investment, gradually innovating and modernising production lines, equipment, and technology with automated production process to improve production and business efficiency.

Sr. Lt. Gen. Pham Hoai Nam, Deputy Minister of National Defence visits the Factory in February 2025

The primary solution that the Party Committee and the Board of Directors of the Factory focus on is to adjust and streamline its workforce associated with improving the quality of its human resources. Thoroughly grasping and strictly implementing Directive No. 2626/CT-CNQP, dated 22 April 2020 of the Chairman of the General Department of Defence Industry on strengthening the management and use of workforce in single-member limited liability companies under the General Department of Defence Industry, the Factory builds and implements a plan to restructure, innovate and improve its operational efficiency, focusing on restructuring its departments, workshops, and enterprises to make them lean, compact, and operate effectively and efficiently.

Realising the decisive role of human resources, the Factory always adheres to the requirements, regulations of the superiors and practical operations to select and recruit its workforce in a transparent manner, considering professions, qualifications, and moral qualities as core criteria. At the same time, it proactively contacts with training institutions to attract and recruit suitable personels with the needs. Moreover, it proactively conducts annual training and refresher courses to consolidate and improve the skills, expertise, and professionalism of its employees, focusing on the capacity and level of management and operation of high-tech equipment; the processes and technologies for the production of weapons and explosives on automatic production lines and equipment, etc., gradually develop a contingent of leading technological officers and core technicians. Up to now, 45% of its workforce holds bachelor and post-graduate degrees; the number of high-level workers accounts for 32.8%. Besides attractive remunerative packages to recruit high-quality human resources, the Factory always pay attention to ensuring an increasingly better living standards for workers, conducting propaganda and education on traditions, fostering good working environment, protecting legitimate rights and interests to motivate its employees, making them committed and enthusiastic in work, contributing to improving production and business efficiency and sustainable development of the Factory.

Operating in an open market with fierce competition and an increasingly growing production force, in order to gain high business effectiveness, the Factory has focused on enhancing its corporate governance with advanced management solutions. Accordingly, it has actively reviewed, proactively revised, supplemented, and promptly issued new regulations and rules on corporate governance, seriously abided by disciplines on the management of technology and product quality. It has researched and applied advanced and modern corporate governance models to reduce costs, improve production and business efficiency; promoted digital transformation, associated with the application of quality management system according to ISO standards in administrative reform. Moreover, it has sent its staff to training courses on corporate governance; strengthened cooperation military and civil units and enterprises on corporate governance and business administration; improved working conditions and environment for workers, and prevented occupational accidents. As a result, it has bettered its management and operation, contributing to increasing labour productivity, reducing costs and product prices, increasing competitiveness in the market.

A production line of the Factory

In the face of the strong impact of the Fourth Industrial Revolution, the Factory has actively invested and innovated its technology and production equipment; diversified its product ranges to adapt to the new situation. Its Party Committee has issued Resolution No. 373-NQ/DU, dated 27 June 2023 on leading science and technology work until 2030 and beyond, insisting on enhancing the capacity of defence and economic production in the investment plans towards efficient and effective direction with science and technology as the foundation for development. On that basis, it reviews its resources and finances carefully, clearly identify the order of priority for investment items and technological innovation. The goal is to improve the level of automation of production lines, gradually modernise equipment and technology; mechanise and automate some production processes, especially in highly complex production stages, in toxic, heavy, dangerous areas, or areas with strict requirements on fire and explosion safety. In addition to the procurement of new equipment, the Factory has promoted its internal resources as to foster scientific researches, technical initiatives and improvements. Over the past five years, 85 projects have been accepted and applied, and nearly 2,400 initiatives and solutions have been put into practical production, in which 21 research and trial projects have been successfully finished with high technical content, promptly solving practical difficulties. Besides, it has also designed, manufactured, renovated and replaced the degraded production lines, outdated technologies and equipment, including the imported ones. These innitiatives and improvements have benefited the Factory over 25.8 billion VND, saved over 15.4 billion VND in costs, contributed to increasing productivity, reducing costs, improving quality and competitiveness of products in the market, and improving the working environment for workers. The projects, production lines, technologies, and equipment invested and innovated by the Factory have brought about positive results. The products manufactured and supplied by the Factory to the entire Military for training and combat readiness always ensure design standards without no safety issues due to manufacturing errors.

In production and business, the Factory has always stayed steadfast and adhered to the Party's viewpoint on closely combining national defence with economy and economy with national defence. Accordingly, the Factory has made full used of its resources, proactively implemented and completed all of its tasks and targets of defence production according to budget plan. Since 2020 to date, it has produced over 2.6 million defence products of good quality with absolute safety; researched, designed, and successfully tested many types of new generation weapons. In addition, it has also taken  use of surplus capacity, technology and the dual-use of equipment to expand economic production with products as diverse as chemicals, industrial explosives, and some mechanical products with high complexity and precision, which have been supplied for both domestic and foreign makets, contributing to increasing revenue, ensuring job and increasing income for its labourers.

Thanks to the drastic and synchronous implementation of solutions, the Factory has ceaselessly improved its corporate governance and business efficiency, maintaining stability and sustainable development. It has become one of the few enterprises of the General Department of Defence Industry that always maintains a stable revenue of over 1,000 billion VND per year, and a good working environment where many generations of workers are attached, dedicated and developed. On the occasion of the 60th anniversary of its Traditional Day, the Factory was honoured to be awarded the Third Class Military Exploit Order by the State. This is such a great pride and motivation for its cadres, employees and workers to continue promoting the tradition of "Solidarity - Innovation - Creativity – Determined to Win" to build it a core, dual-purpose, modern defence production unit.

Colonel, Master. NGUYEN XUAN QUANG, Director of the Factory