UAV Market: Paving the Way for Vietnamese Brands

The emergence of a series of UAVs serving civil and defense needs shows the great capability and potential of Vietnamese enterprises in this market segment.

The event of CT UAV - a company specializing in the application of unmanned aerial vehicle (UAV) technology, a member of CT Group - signing a contract to export 5,000 heavy-duty transport UAVs to South Korea marked the first time Vietnam exported a large number of UAVs to the international market.

Many impressive UAVs

CT UAV said the company has many UAV products serving different needs, including passenger transport, cargo logistics, medical rescue, fire fighting, tourism, construction... The company has cooperated with domestic and international research institutes and laboratories to create a solid foundation for technological development and innovation in the field of UAV.

In addition to UAV CT, a number of other large units and enterprises in Vietnam have also invested heavily in UAV research and development (R&D). Receiving much attention at this time is the modern UAV system researched, developed and mastered by Viettel High Technology Industry Corporation (Viettel High Tech). At the 2024 Vietnam International Defense Exhibition, Viettel High Tech introduced 3 types of UAVs, including: reconnaissance UAVs, suicide UAVs and multi-purpose UAVs.

Among them, the VU-R70 medium-range light reconnaissance UAV stands out with its flexible day and night surveillance capabilities, long operating time and high speed. With a wingspan of 3.1 m, a length of 1.7 m and a maximum take-off weight of 26 kg, the VU-R70 can operate continuously for 4.5 hours, with a maximum speed of 120 km/h. Artificial intelligence (AI) technology integrated into the camera system allows this UAV to search, detect, identify and indicate targets completely automatically.

Meanwhile, the VU-R50 short-range lightweight reconnaissance UAV is the optimal vehicle for fast and accurate reconnaissance missions. Its compact design and flexible operation make the VU-R50 an effective surveillance tool in tactical situations.

Notably, the VU-C2 suicide UAV (cruise missile) is capable of precision attacks on battlefield targets. Equipped with an optical-electronic warhead and homing head, integrated with AI, the VU-C2 can search, detect and lock on targets completely automatically, then attack the target when ordered by the commander. This weapon has a wingspan of 1.5 m, a length of 1.1 m, a maximum take-off weight of 8 kg, a continuous operating time of 40 minutes and a maximum target attack speed of up to more than 130 km/hour.

There are also UAVs RAV-8, M400-CT2, DIS-18 researched and produced by the Air Defense - Air Force Technical Institute. With flexible features and high performance, these UAVs are designed as flying targets for training, testing and evaluating the effectiveness of medium- and long-range air defense missile systems.

UAV manufactured by Viettel High Technology Industry Corporation Photo: NGUYEN HUONG

Market space is still large

Mr. Tran Kim Chung, Chairman of the Board of Directors of CT Group, said that the order to export 5,000 UAVs to Korea not only affirms CT UAV's technological capacity but also opens up great opportunities to export to many other countries. The Group is entering many other markets such as ASEAN, the Middle East, and North America. "The contract with the Korean partner is implemented in the form of OEM (manufacturing according to design) with exclusive technology developed by Vietnamese engineers, through which other businesses can join the supply chain" - Mr. Tran Kim Chung informed.

According to an expert, the potential for UAV production in Vietnam is still huge, with the potential to expand production by 2-3 times in the next 5 years. Although production capacity is mainly concentrated in a few large corporations, there is still room for startups and small businesses to participate in the component supply chain - such as batteries, sensors and control software.

This expert believes that the domestic UAV market size could reach 100 million USD/year by 2027 when it is widely applied in logistics (fast delivery), agriculture (pesticide spraying) and rescue (multi-terrain firefighting). However, the major challenge now is the lack of high-quality human resources and testing infrastructure. Globally, the UAV market is forecast to reach 50 billion USD by 2030, with high demand in the transportation and military sectors.

"Vietnam has great potential for exports to the US, India, and ASEAN thanks to low production costs, only 30%-50% of those in developed countries, and competitive quality. However, it is necessary to overcome barriers related to international certifications such as FAA, EASA, and at the same time be able to compete with "giants" such as DJI - China or Boeing - USA" - this expert pointed out.

Ms. Vo Nhat Lieu, CEO of Propiin Real Estate Finance Technology Academy, cited data showing that the global UAV market is growing rapidly with an average growth rate of 13.9% per year in the period 2024-2030. Large-capacity UAVs are being widely and effectively applied in many important fields - such as urban management and national security - with the ability to monitor widely and detect incidents and abnormalities early. "UAVs can fly for a long time and collect real-time data, helping to increase the efficiency of management and security protection compared to traditional methods," Ms. Lieu compared.

However, it is not easy for businesses to exploit this potential market. According to Mr. Tran Kim Chung, competitors in the UAV field in the world are currently very strong, especially China, which accounts for 70% of the global UAV market share. "China invests heavily in research and has a whole scientific ecosystem. We think we need to find ways to develop in parallel, instead of confronting competitors," Mr. Chung concluded.

Offering solutions for developing and managing UAVs, the Chairman of CT Group proposed making an identification chip or SIM for each UAV, thereby not only managing the UAVs in circulation but also collecting inspection fees. "The role of the state is needed in supporting the search for large orders and at the same time being the first consumer, as well as introducing Vietnam's high-tech products to the world," Mr. Chung suggested.

Opportunities for low-altitude space economy

According to a report by Markets & Data, the size of the Vietnamese UAV market will reach 73 million USD in 2023, expected to increase to 191 million USD in 2031, with a growth rate of 12%-15%/year. This growth is driven by demand from the logistics sector, smart agriculture, and disaster response in the context of climate change.

According to Mr. Tran Kim Chung, there needs to be a management solution for the UAV industry, thereby effectively developing the low-altitude space economy.

Source: https://nld.com.vn/thi-truong-uav-mo-loi-cho-thuong-hieu-viet-196250819210700976.htm