CT Group chairman unworried by skepticism about UAV exports to South Korea

On Aug. 12 CT Group signed. a contract to export 5,000 UAVs to South Korea. The heavy-duty UAVs, which can carry payloads of 60-300 kilograms, are produced by CT UAV, a subsidiary of CT Group.

Founded in 1992, CT Group started in trading, manufacturing and real estate before moving into high-tech industries. Tran Kim Chung, chairman of CT Group, speaks to VnExpress about a decade of UAV research and the ambition to bring Vietnamese technology products to the global market.

- How would you address skepticism over CT Group’s UAV technology?

Skepticism is understandable. This is our first UAV export and so people are not convinced. I see it as a natural reaction. After our first orders are delivered, those doubts will go away.

Science needs doubt as a motivation for progress and exploration. But it must be constructive in nature. UAV technology is underdeveloped in Vietnam. It requires support from the government and the community.

Tran Kim Chung, CEO of CT Group. Photo by NVCC

We also received messages of encouragement, with some even making videos to show support. Over 10 years of developing UAVs, we have gone through countless challenges and losses. That is why the encouragement from the community, as well as partners at Vietnam National University HCMC and HCMC University of Technology, is deeply moving and gives us strength.

If you have any doubt, send your questions their way. People without technical knowledge often make assumptions based on feelings, but experts will have clear answers.

In Vietnam, CT Group is still a relatively unknown name in the technology sector. When did the company begin focusing on technology products?

In 2022, on our 30th anniversary, we announced a new strategy for the next 30 years with a focus on technology. We identified nine core sectors: semiconductors, AI, UAVs, cell and gene, ESG, digital transformation, crypto, green building materials, emission reduction technologies, and quantum computing. Before that we had spent several years quietly preparing for this direction.

Science and engineering is very different from producing consumer goods. Research and trials often happen in the background, and so not many people knew CT Group had been working on nine technology areas before exporting our first UAVs.

I realize how different the fourth industrial revolution is from the previous ones. Countries that fall behind will have to rely on others, while those that can adapt will rise above. I talked about this topic extensively in speeches at universities. Vietnam should focus on a long-term strategy for our transformation.

CT Group now operates in 12 sectors, nine of them high-tech and the three traditional ones of smart urban areas and technical infrastructure, food and healthcare. This year we expect revenues from high-tech products, with growth projected next year.

How has the company researched and developed UAVs? What is the current scale and production capacity of CT UAV?

We began researching UAVs in 2016 and failed twice. The first was when we partnered to establish Dr One with a company specializing in agricultural UAVs. We wanted to focus on research, while they wanted distribution, and in the end we could not find common ground.

Later we set up CT Air UAV with another partner, with a clearer research direction. Together we tried to enter the Middle East market but our research speed could not keep up with the market’s high demands.

After those two failures we have learned our lessons, and now CT UAV has a rapid research and development pace that keeps up with market trends.

We now have five UAV factories. We are preparing to build a space center in HCMC for 10,000 engineers to research and test in the field of space economy. A UAV factory will be set up in Tay Ninh soon.

A replica of the CT-2W1, a passenger-carrying UAV developed by CT Group, on display at the 1st Party Congress of the Ministry of Science and Technology on August 16 in Hanoi. Photo by Dinh Tung

What can you say about the contract to export 5,000 UAVs to South Korea?

We signed an export order with Airbility of South Korea. This is a company with strong technical expertise. They have a team of experienced professionals from major corporations and government agencies, and financial backing from investment funds.

Airbility, whose focus is solely on design and innovation, turned to CT UAV for our production capabilities, laboratories at home and abroad and fast R&D capacity to turn ideas and designs into products in a short time.

In working with them, we saw their potential and professionalism. They also have the financial strength to ensure payment for the order. I believe this cooperation model is feasible and hope for a long-term partnership.

We are about halfway through the process. We will finalize the prototype as early as October. Production and delivery will take six to nine months. If everything goes to schedule, we will complete the export of 5,000 UAVs to South Korea by 2026.

In the order, the company mentioned an 85% indigenization rate. What does this number mean?

We possess six key technologies in UAV development, electronic circuit design and production, composite technology for aircraft body molding, flight control systems, telecommunications for signal and image transmission, gimbal stabilization, and battery technology.

The company currently own 85-90% of UAV manufacturing technology, with 16 product lines designed to boost economic development. We are currently lacking in battery cells, where investment is limited because the technology changes quickly and market supply is readily available.

CT Group also has chip design capabilities, something few UAV companies worldwide do. We also own a company specializing in AI, which helps create an ecosystem where different technologies complement one another.

Tran Kim Chung is a member of the scientific council of the HCMC University of Economics. Photo by NVCC

After South Korea, what are the next UAV markets for CT Group?

We are negotiating 10 orders in several countries. All customers come from markets with long-term growth potential. We do not sell UAVs to countries at war or those with political risks.

This week, we may sign a framework contract with a partner in Indonesia. Many customers in Europe and North America are also interested, with one condition: that our UAVs must not use Chinese components. We can meet that requirement thanks to our in-house technology.

With 10 years’ experience in the field, how do you see the Vietnamese UAV market?

Vietnam is a new market for UAVs. Only a few companies have products competitive enough for the international market, while most are focused on imports and distribution.

UAVs in Vietnam are mainly used in agriculture, with the Mekong Delta and Central Highlands as the key markets. Some industries have started utilizing UAVs, but only on a small scale. Regulations are a major obstacle.

Meanwhile, the global UAV industry is expanding rapidly. In China, the low-altitude space economy was worth USD 65 billion in 2023 and is expected to reach USD 500 billion this year.

At the global level, the ongoing trade war is creating market gaps that Vietnamese UAV companies can take advantage of.