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Thales Group moves to expand presence in Vietnam

Invest Global 14:08 03/06/2025

French aerospace and defence corporation Thales Group, a multinational in advanced technologies, is moving to expand its operations in Vietnam.

Thales signed an MoU with the Vietnam Space Committee Office and OSB Group at the Ministry of Finance in Hanoi on May 27. Under the agreement, the three parties will focus more on education, applications, and innovation in the space domain, covering telecommunications, space exploration, and navigation.

"We recognise that the space sector is growing in Vietnam. In 2021, the prime minister issued a national space strategy under the authority of the Vietnam Space Committee," said Nicolas Bernardin, country director for Thales in Thailand, Vietnam, and Myanmar at the meeting with Vietnamese media in Hanoi on May 26.

Thales Group moves to expand presence in Vietnam Nicolas Bernardin, country director for Thales in Thailand, Vietnam, and Myanmar. Photo: Thales

Thales is present in 68 countries, serving three main markets; aerospace and space; defence and security; and cybersecurity and digital identity, and has been in Vietnam since 1994.

The company provides high-tech solutions for government agencies, such as the Ministry of Transport, Ministry of Defence, and Ministry of Public Security, and the private sector, with airlines, telecom operators, banks, and IT firms among their Vietnamese clients

One of the solutions Thales has implemented is for the Ministry of Transport is a system called MEOLUT NEX, a breakthrough technology for satellite search and rescue assured by satellites in medium Earth orbit. The solution is currently operated by the Vietnam Maritime Administration.

In the aerospace domain, Thales has a considerable portfolio of airlines, aircraft manufacturers, and ground infrastructure. It has been a long-term partner of the Civil Aviation Authority of Vietnam and Vietnam Air Traffic Management Corporation. It has installed different radar systems, including for the Ho Chi Minh Air Traffic Control Centre.

For airlines, the company is working very closely with all the major airlines, Vietjet, Bamboo Airways, and Vietnam Airlines.

"We have equipped aircraft with avionic systems and in-flight entertainment systems, particularly for Vietnam Airlines. We work with both Airbus and Boeing, and our solutions are onboard aircraft such as the B7X7 series and the A350," said Bernardin.

In the defence domain, Thales has provided a range of technologies including radar, optronics, and sonar to the Ministry of Defence through various projects, supporting both the navy and land forces.

Following several major acquisitions, Thales has positioned itself as a top global leader in cybersecurity. It works closely with various banks to provide payment solutions, credit cards, digital banking, and digital payment systems. It also supports banks in securing financial transactions by integrating hardware security modules.

Thales Group moves to expand presence in Vietnam A Thales delegation at the French Tech Summit Vietnam in Ho Chi Minh City in May. Photo: Thales

In the telecom domain, Thales works with all major operators, Viettel, VNPT, MobiFone, and Vinamobile, providing SIM cards. As the market evolves, it is now moving towards eSIM, and the company’s solutions are already operational across these operators.

To deepen local partnerships, the group recently expanded its collaboration with VNPT to include space-related technologies, building on an MoU signed with the telecom provider a few years ago.

Vietnam is embracing the global AI revolution across key sectors, from aerospace and space technologies to defence, security, cybersecurity and digital identity solutions

At the briefing, Dr. Marko Erman, senior vice-president, chief scientific officer, Thales Group, shared their approach to AI being applied to critical systems, saying, "Today, everyone is familiar with some form of AI in daily life. But when it comes to critical systems, the requirements are very different, and the stakes are much higher. That affects how we design and apply AI solutions in such contexts."

Thales Group moves to expand presence in Vietnam Dr. Marko Erman, senior vice-president, chief scientific officer, Thales Group. Photo: Thales

The company has been working on AI for critical systems for more than 30 years and is invested in the newest wave, including generative AI. Erman outlined critical priorities for AI development before emphasising its transformative potential across the defence sectors.

"For instance, across all segments of defence, naval, land, and air, AI is already having or will have a strong impact. This includes radars, sonars, visible and optical and SAR imagery, and more. And the company is investing heavily in the space domain," he said.

In the area of aviation and air transport, there are many use cases. One example is the commercial 'flight-to-gate' journey, which uses touchless biometric technology, from enrolment to boarding, offering a fast, secure, and privacy-preserving experience for travellers.

Another use case involves improved efficiency during takeoff and landing. AI helps optimise the sequence of planes taking off and landing, resulting in smoother traffic flow. Then there's on-route optimisation, which integrates air traffic control with intelligent onboard navigation systems. The result is a reduction in kerosene consumption, and a 10 per cent decrease in CO₂ emissions.

AI is also being applied in both telecommunications and earth observation where it helps with orbit planning and optimisation, both for single satellites and even more for constellations, as well as dynamic frequency allocation.

"In observation, AI enables a wide range of applications, from environmental monitoring and agriculture to crisis management. And in urban environments, there are many opportunities for AI," said Erman.

AI’s transformative potential extends powerfully to manufacturing, where it drives competitiveness by optimising complex or poorly defined processes. By analysing multiple variables in real time, AI enables precision improvements, waste reduction, and adaptive production lines, revolutionising efficiency in ways traditional methods cannot match.

"One of the most important things to understand is that AI is not only revolutionising how we communicate on social media or shop online, it is also reshaping our economy, our systems, and society at large," Erman noted. "Critical systems require a specific kind of AI. This is not the same as consumer applications. Companies that are strong in AI for consumer use cases often lack the necessary capabilities when it comes to critical systems."

According Erman, Vietnam holds significant potential to become a key link in the global technology supply chain, particularly in AI applied to defence and cybersecurity.

"Vietnam is undergoing a profound digital transformation with ambitions to become a technological powerhouse in Southeast Asia. The new bilateral strategic partnership paves the way for long-term cooperation in key sectors, underlining a shared commitment to supporting Vietnam in achieving its technological goals," he said.

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