The Development of MRO Shared Services in Vietnam: A Comparative Analysis with Southeast Asian Countries

The MRO shared services market has experienced significant growth in Southeast Asia. These services provide airline operators with enhanced opportunities to streamline spare part procurement, reduce maintenance costs for engines and components, and improve fleet availability. By understanding the MRO shared services framework in Southeast Asia—comprising repair workshops and maintenance centers at key regional hubs—synergies can be created to boost performance in a short time. The MRO purchasing process within these shared services generates notable cost savings and efficiency improvements for airlines. The market’s growth is driven by factors such as rising air traffic, increasing fleet sizes, and the need for regular maintenance and repairs to ensure safe, efficient aircraft operations. Compared to other countries in the ASEAN region, Vietnam, in particular, holds significant potential to position itself as a leading MRO hub in Southeast Asia. Its advantages include lower labor costs, a strategic location, and growing domestic demand for MRO services due to fleet expansions by airlines such as Vietnam Airlines, VietJet Air, Vietravel, and Bamboo Airways. However, to unlock this potential, Vietnam must address its shortcomings in infrastructure, technology adoption, and skilled workforce availability. Looking ahead, key trends are expected to shape the MRO shared services market, including expansion of MRO facilities, investments in technology, strategic partnerships and acquisitions, a focus on sustainability, and training and skills development. To capitalize on these trends, five essential measures should be adopted: investing in skill development, embracing digitalization, strengthening customer relationships, exploring partnerships and collaborations, and implementing sustainable initiatives.