Z129 Factory under the General Department of Defence Industry is assigned the core political task of researching, developing, and manufacturing various types of fuses for national defence, while simultaneously engaging in production and business activities to contribute to socio-economic development.

Over its 55-year journey of construction, development, and maturation, generations of the Factory’s cadres, engineers, and workers has continuously striven to overcome all hardships and challenges, achieving outstanding accomplishments in production and labour. These efforts have shaped the proud tradition of “Solidarity – Proactiveness – Creativity – Determined to Win”. In recognition of these achievements, the Factory was honoured by the Party and the State with the title Hero of the People’s Armed Forces in the New Era (in 2000), along with many other distinguished awards.

In recent years, the Factory has witnessed comprehensive and steady development. Its workshop system has been newly invested and built towards modernity and synchronisation; several production lines have been automated; and digital technologies have been applied to production management and monitoring. Defence products manufactured by the Factory consistently meet technical standards, ensuring reliability and safety; meanwhile, its economic products have affirmed their position in the market and are oriented towards export. However, alongside these accomplishments, the Factory also faces a number of difficulties and challenges. Defence production tasks assigned to the Factory involve new products of high complexity; economic production still lacks flagship products; prices and material supplies fluctuate frequently; and requirements regarding technical standards, safety, environmental protection, corporate governance, and production schedules are becoming increasingly stringent in the context of international integration. In response to this situation, the Party Committee and Board of Directors of the Factory have proactively implemented a range of synchronous solutions aimed at enhancing production capacity, improving working conditions and incomes for employees, and accelerating international integration, thereby creating new momentum for development.

Honouring outstanding individuals in the Determined to Win movement of the 2019-2014 period

Renewing corporate governance and standardising production processes

During its development, there were periods in which the Factory’s management model and production processes remained cumbersome, involving numerous intermediary steps that limited proactiveness and creativity at the grassroots level. As a result, task implementation was often prolonged, costs were high, and effectiveness did not match potential. From this reality, the Factory adopted a comprehensive reform policy, shifting from a traditional management model to a modern corporate governance model, placing effectiveness, production and business quality, and innovation at its core. Accordingly, the Factory has focused on the reviewing, streamlining, and restructuring its organisational system; clearly defining the functions and tasks of each department and workshop; reducing intermediary tiers and indirect labour; and expanding autonomy and responsibility for production units. The Factory has implemented enterprise resource planning (ERP) software on the military network environment, manufacturing execution systems (MES), and KPI-based performance evaluation systems to ensure objectivity and transparency, foster healthy internal competition, and emphasise substantive, results-based performance. Simultaneously, it has accelerated the application of information technology and digital transformation in production management and operations, while reviewing, standardising, and unifying all production regulations and processes under the ISO 9001:2015 quality-management system.

Recently, the Party Committee and Board of Directors have instructed departments and workshops to conduct comprehensive assessments of their operational capacity—from human resources, equipment, and technological lines to management and operating mechanisms—as a basis for formulating production and business development strategies that are practical, feasible, and sustainable. In parallel, the Factory has focused on revising and supplementing regulations to meet mission requirements, ensuring all activities are carried out in an “effective and efficient” manner and in a unified direction. The Factory also promotes the “Seven Dare” spirit among its cadres and Party members, especially key managers of departments and workshops; strengthens decentralisation and empowerment, while linking responsibility of Party committees, commanders at all levels, and each worker to task performance. This approach maximises collective intelligence, capability, and the sense of responsibility among cadres, engineers, and employees.

Developing high-quality human resources to meet immediate and long-term mission requirements

As a unit specialising in the production of mechanical products requiring absolute precision, high-quality human resources—alongside modernised technological lines—serve as a decisive, foundational factor for advancing the modernisation of defence production, expanding economic production, and promoting international integration in the current landscape. With this awareness, and on the basis of thoroughly grasping and implementing Resolution No. 1204-NQ/ĐU dated 15 November 2019 of the Party Committee of the General Department of Defence Industry on leading the development of the cadre contingent—particularly key leaders of agencies and units and sectoral experts in technological engineering—the Factory has vigorously promoted the building and development of a high-quality team of cadres, engineers, and workers through various practical and suitable measures. Accordingly, in addition to selecting capable personnel for training at military and civilian academies and universities, the Factory has strengthened cooperation with institutions such as the Military Technical Academy, Hanoi University of Science and Technology, and Viet Tri Industrial University to organise on-site training courses. These courses focus on new, specialised, and prioritised areas such as automation, digital transformation, ISO quality management, and leadership skills in modern industrial production environments, thereby continuously enhancing the qualifications and technical proficiency of cadres, engineers, and technicians.

Checking safety assurance before work

Simultaneously, the Factory has actively renewed training and retraining methods towards hands-on, experience-based instruction directly on equipment; facilitated and encouraged workers to pursue self-study and self-improvement to upgrade their professional competence and skills. Efforts have been strengthened to enhance political awareness, discipline, legal compliance, and safety regulations; and to cultivate industrial work styles and professional attitudes across all staff categories. The Factory also boldly appoints and employs capable young cadres, while fostering a friendly working environment that motivates employees to remain dedicated and contribute effectively.

As a result of these efforts, 100% of the Factory’s cadres and engineers now hold university degrees or higher, with more than 36% possessing doctoral or master’s qualifications; over 70% of technical workers hold skill grades of 5/7 or above. This human resource foundation has become a critical factor in enhancing the Factory’s production and business capacity, meeting the requirements of its sustainable development.

Fostering a culture of innovation and accelerating digital transformation

Amid the growing trend towards smart, automated, and digitised industrial production facilities, building a culture of innovation and promoting digital transformation—towards the establishment of a “Smart Factory”—is of particular significance to the Factory’s development. To achieve this, the Factory has focused on leading and directing the creation of a democratic working environment that encourages individuals to think boldly, act decisively, assume responsibility, and embrace innovation. This approach enables workers to maximise their abilities, contribute intellect, propose technical improvements, and optimise production processes. The Factory has implemented Kaizen and 5S programmes, creating noticeable improvements in scientific, orderly, and clean workshop layouts, thereby enhancing production efficiency. A strong movement to promote initiatives and technical innovations among cadres, employees, and workers has been cultivated in association with the emulation campaign “Diligent and Creative Labour”. As a result, hundreds of initiatives and improvements are registered and applied annually, contributing to shortened production cycles, reduced costs, increased productivity, and improved precision, safety, and efficiency.

At the same time, the Factory is accelerating digital transformation in parallel with modernising its organisational structure and management methods; strictly complying with the ISO 9001:2015 quality-management system; and researching the application of international standards to ensure that products meet the conditions for export to new markets. Attention has been placed on developing digital thinking and skills among cadres, engineers, and technical workers. Through training courses and knowledge-sharing sessions on digital governance, information technology applications, and the use of integrated management systems (ERP), workers are gradually mastering operational software, warehouse management tools, progress-monitoring platforms, and production data analysis systems.

Conducting quality check

Promoting partnership development, expanding markets, and advancing towards export

The Factory identifies market expansion and partner development as one of its strategic directions for sustainable defence–economic production. Accordingly, alongside strengthening cooperation with traditional partners, the Factory has instructed its functional departments to proactively study and forecast market trends, formulate customer and product development strategies for each period, and ensure alignment with production capacity and the development orientation of the Vietnamese defence industry. Emphasis is placed on seeking and expanding cooperative relations with domestic and foreign enterprises, particularly those involved in precision mechanics and civilian technical equipment with strong export potential. The Factory also actively participates in exhibitions and trade fairs—such as the Vietnam International Defence Expo (2022, 2024)—considering them vital channels for product promotion, partner outreach, and market trend assessment. As a result, the Z129 brand has gained broader recognition, opening opportunities for production linkages, technology transfer, investment cooperation, and the signing of numerous high-value contracts with international partners.

To integrate more deeply into the global market, the Factory attaches special importance to enhancing product quality and applying advanced quality-management systems (ISO 9001:2015, Vietnamese military standards, and partner-country standards). Simultaneously, it has worked to build a reputable and modern corporate image with flexible production capacity capable of meeting stringent technical, safety, and environmental requirements. This represents a sustainable path that contributes to improving competitiveness, increasing revenue, and generating financial resources for reinvestment in defence production—affirming the Factory’s position as one of the defence enterprises that is dynamic, autonomous, and ready for international integration.

With sound policies, practical, and effective solutions, the Factory has achieved remarkable progress in both defence and economic production. During the 2020–2025 term, revenue increased by over 300% compared to the previous term; working conditions were improved; welfare facilities were enhanced; and workers’ incomes rose significantly. These achievements form a solid foundation for Z129 Factory to continue affirming its position, advancing steadily in development and integration, and contributing to building a self-reliant, resilient, dual-use, and modern defence industry in the new era.

Senior Colonel LE VAN MINH, Director of the Factory