Increasing localization rates

In line with the approved defense production plan and its assigned functions and missions, Factory Z181 focuses on researching and manufacturing high-tech defense products in three fields: optoelectronics, electronics, and electrical materials. Its key products include image intensifier tubes, quick-aiming sights for STV infantry rifles and pistols, electronic proximity fuzes, jamming devices for countering unmanned aerial vehicles (UAVs), and piezoelectric ceramic materials.

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Senior Colonel Do Cao Kien, Chairman and Director of Factory Z181 (Photo provided by the factory)

Localization rates vary among the factory’s key products in these three fields. However, throughout the research, design, and manufacturing processes, Factory Z181 consistently seeks to maximize domestic capabilities and use local supply chains to increase localization rates, working toward the goal of building an independent, self-reliant, and resilient defense industry. Currently, the localization rate of the factory’s products generally ranges from 60 to 90 percent, with some products achieving rates of more than 90 percent.

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Senior Colonel Do Cao Kien inspects and evaluates the implementation of the technological process for manufacturing the KBN-M1 quick-aiming sight. Photo provided by the factory.

According to Senior Colonel Do Cao Kien, Chairman and Director of Factory Z181, in order to achieve this target, localization rate should be taken into account at every stage of product development, including research, design, engineering, and manufacturing. The factory should make the most of domestic capabilities, use local supply chains, and build a strong defense industry ecosystem. At the same time, it should strengthen its ability to master foundational, core, and, particularly, strategic technologies. Currently, Factory Z181’s products originate from three different sources: independent research, design, and manufacturing; technological design documentation received from domestic research institutes; and technology transfers from foreign partners.

In the process of investing in and building its technological foundation and developing its capabilities, Factory Z181 has pro-actively proposed and sought opportunities for cooperation with numerous international partners through exhibitions, trade promotion activities, and defense industry cooperation programs between Viet Nam and other countries. In line with the Party and State’s policy of multilateralizing and diversifying external relations and pro-actively promoting international integration in the defense industry, the factory has stepped up cooperation with foreign partners from Russia, Belarus, France, the RoK, China, India, Israel, and other countries.

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Factory Z181 leaders inspect and assess the quality of KBN-M1 quick-aiming sights on the production line. Photo provided by the factory.

Investing in high-quality human resources

The position and role of high-quality human resources in the development of the country as a whole and the military in particular have been affirmed by the Party, State, and Central Military Commission in their congress resolutions and thematic resolutions on education and training, as well as science and technology development. With the support of the Ministry of National Defense and the General Department of Defense Industry, well-trained personnel educated both at home and abroad are sent to work at the factory annually. This workforce plays an important role in enhancing the factory’s competitiveness.

To attract and retain high-quality personnel, the factory has strictly implemented the Party’s policies and guidelines, while flexibly and creatively studying and applying State policies on attracting and making effective use of talented people in the ways suited to the unit’s resources and actual conditions.

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Night-vision device assembly line at Factory Z181 (Photo provided by the factory)

Senior Colonel Nguyen Van Thang, Deputy Directory of Factory Z181, shared that the factory has introduced recruitment incentives, continuously improved working conditions, and created an environment where individuals can demonstrate their capabilities. It also enables personnel to participate in key projects and programs of the General Department of Defense Industry. The factory allocates maximum resources to science and technology, innovation, and creativity, while paying due attention to commendation policies, the conferment and promotion of military ranks, benefits related to official housing, and recruitment arrangements for high-quality personnel. In addition, it conducts dissemination activities to foster a sense of responsibility and dedication among its personnel, encouraging them to contribute to the development of the factory in particular and the national defense industry as a whole.

Opportunities offered by the expo

The Viet Nam Defense Expo 2026 will mark the third time Factory Z181 has displayed its products at the event. At this year’s expo, the factory will unveil a range of products, many of which will be displayed at the event for the first time. Most are the results of scientific and technological research, with some already in mass production and others undergoing initial production runs. Their performance is comparable to that of similar products from other countries.

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Rear Admiral Nguyen Van Bach, Director of the General Department of Defense Industry, visits defense products manufactured by Factory Z181. (Photo provided by the factory)

Senior Colonel Do Cao Kien said the factory views the expo as an opportunity to promote trade, showcase its products to domestic and international partners, and seek cooperation in developing strategic products for national defense, security, and export. The factory also hopes to learn more about the capabilities and technical features of defense products and emerging military technologies on display.

Translated by Quynh Oanh