Z173 Factory (Hong Ha Shipbuilding One Member Limited Liability Company) is one of the core units in the shipbuilding sector of the Vietnam Defence Industry.

Over 60 years of construction and development, generations of cadres, engineers and workers of the Factory have always upheld their solidarity, determination, bravery and creativity; overcome all difficulties and challenges, excellently completed the task of defence and economic production, actively contributed to the cause of Military building and national construction. For its achievements, the Factory has been honourably awarded the title of Labour Hero in the renewal period, Hero of the People's Armed Forces and many other noble awards by the Party and State.

Leader of the General Department of Defence Industry visits and works with the Factory

Sound product strategy, the driving force for historic progress

Looking back at the journey of its construction and growth, it can be seen that the steady progresses of the Factory were attributed to many factors, in which sound product strategy is the key. During the resistance war against the US, in response to the urgent requirements of task, the Factory boldly proposed to switch from the made-by-order model to direct production. At the same time, it actively encouraged and stimulated the solidarity, self-sufficiency, self-reliance, and the synergy of collectives and individuals in performing the task. As a result, it successfully researched, and produced hundreds of canoes, barges, and river-crossing vehicles, together with many effective initiatives, promptly serving the battlefield, contributing significantly to the great victory of the nation, liberating the South, and unifying the country.

In the renewal period, the Factory was proactive, sensitive, closely followed the reality, promoted innovation in thinking, resolutely overcame the old way of "small repairs, rudimentary means" to start new development strategy, beginning from repairing river ships, to repairing sea ships, and gradually building new seafaring ships and military ships. This sound strategy not only helped it overcome difficulties and challenges in the transitional period from a subsidy mechanism to the socialist-oriented market mechanism, but also ushered in a breakthrough development direction, with notable products, such as: high-speed patrol boats with aluminum alloy hulls, 450-ton military transport ships, rescue boats, ... marking a great stride in the shipbuilding capacity.

Promoting its success, thoroughly grasping and implementing the resolutions of the superiors on building and developing the defence industry, especially Resolution No. 08-NQ/TW, dated 26 January 2022 of the Politburo (13th tenure) on "Promoting the development of the defence industry to 2030 and the following years", the Factory insisted on the sustainable direction that focuses on developing high-tech medium-tonnage modern ships of great economic value. At the same time, it proactively proposed to purchase preliminary designs from foreign counterparts to make technical design and build new military ships domestically. By means of this approach, it has made great strides in technology, and successfully built many types of modern military ships. Especially, the Factory has also gone global with high-quality products, such as: 3,300-ton and 2,600-ton container ships for DAMEN Group of Netherlands, HH11T boats for Ghana, serving ships for Australia, etc.

With solid goals, enterprise, and the sensitivity in choosing product strategies, the Factory has always been on the right track, stood firm despite difficulties and made numerous developments, making significant contributions to the cause of national construction and defence.

One kind of ship built by the Factory

Building all-round potential as foundation for sustainable development

To realise its product strategy, the Factory attaches special importance to building scientific and technological potential, first and foremost, its human resources. With the motto that “having people is having all”, the Party Committee and the Board of Directors of the Factory identify that developing high-quality human resources is the core factor for its sustainable development. It focuses consistently on employing and preserving its human resources, ensuring balance, in-depth and long-term sustainability. Accordingly, along with adjusting the structure, staffing, functions, and responsibility of departments, offices, factories, and workshops in the “lean, compact, and efficient” direction, it reviews, makes plan, and conducts all-round training to standardise the qualification of its employees according to their job. Emphasis is placed on building a team of top-notch managers and technicians who are good at foreign languages, capable of researching, accessing technology, and managing modern production line; and developing a team of high-skill engineers and technicians as the core in key areas.

Together with human resource development, the Factory focuses on the modernisation of its facilities and technological lines. Closely following the product strategy in each stage and the existing facility and equipment, every year, it proactively researches and proposes investment projects to meet the requirements of immediate tasks and long-term development. In particular, priority is given to replacing old equipment and renovating degraded factories; supplementing, upgrading and replacing the missing and outdated technological lines, especially automation systems, lifting equipment, large-tonnage cranes and logistics and other technical facilities; gradually completing projects according to the approved plans; expanding production areas, and improving comprehensive technological capacity. In addition, it also promotes technical initiatives and innovations, encourages and motivates its employees to actively involve in the research and improvement of equipment to improve production efficiency.

Since 2020 to date, the Factory has built and deployed 07 investment projects, 4 of which have been completed and the remaining ones are under construction; researched and implemented nearly 200 topics, solutions, and initiatives for technical innovation. The projects after being put into operation and use all have brought about high practical value, directly improving product quality and economic efficiency. At the same time, investments have also been made in the upgradation of other facilities to meet international standards, gradually “improving its internal strength”, making a solid foundation to master modern shipbuilding technology.

Another kind of ship built by the Factory

Innovating corporate governance, promoting internal strength, going global

Improving governance efficiency is the key solution, and ensuring the effective operation of production lines is the "key" to improving its competitiveness, enhancing its brand in the context of deep integration. With this thinking, throughout the process of construction and development, the Factory has always persistently innovated corporate governance, considering it a prerequisite to promote internal strength, create a solid foundation to penetrate international markets. From the practice of shifting from the centralised budgeting mechanism to independent accounting, in order to meet the requirements of integration and development, the Factory has actively innovated its corporate governance, identifying defence production as the focus, economic production as the driving force for development. Its corporate governance is modernised, taking efficiency and quality as the measure, and considering the market and customers as the centres. As a result, the Factory quickly adapted to the new mechanism, promoted its internal strength, improved competitiveness, and laid a solid foundation for development in the next stage.

In recent years, the Factory has gradually applied the modern management model according to international standards, coupled with a serious inspection process. Moreover, it has promoted administrative reform, streamlined its structure, standardised its working procedures, and created transparency and consistency in management. It is focusing on the breakthrough of “Improving corporate governance efficiency”, promoting digital transformation and innovation, in order to quickly approach modern management methods, optimise production lines, minimise waste, and improve production and business efficiency. This is an important foundation and driving force for the Factory to realise its aspiration to become a modern defence enterprise in the period of deep integration.

Nowadays, the increasingly deep international integration, coupled with the achievements of the Fourth Industrial Revolution, make it easier for the Factory to take shortcuts and master new technologies, and participate more deeply in the domestic, regional and international shipbuilding industry. This is an opportunity for the Factory to affirm its position, expand the market, and enhance its brand reputation. However, there come significant challenges from the increasingly high technical requirements and international quality standards, as well as the fierce competition from shipbuilding giants, etc. In that context, the Party Committee and the Board of Directors of the Factory determine to continue to promote its heroic tradition, arouse the aspiration to “go global”, proactively grasp and effectively implement resolutions and directives of the superiors, especially Resolution No. 57-NQ/TW, dated 22 December 2024 of the Politburo on breakthroughs in science and technology development, innovation and digital transformation, to create e foundation for improving the capacity of research, design, construction and repair of military ships with high technical and technological content, modern technical and tactical features, meeting the requirements of protecting the country’s sea and island sovereignty in the new situation.

Last but not least, the Factory will accelerate the construction and repair of ships to serve the domestic and foreign markets with the goal that by 2030 it will become a leading defence enterprise in the field of modern military shipbuilding, participating deeply in the international supply chain, making worthy contributions to the cause of national construction and defence in the new developing era. Senior Colonel, Dr. PHAM VAN TUAN, Director of the Factory