Rolls-Royce, the famous UK engine producer, will help national carrier Vietnam Airlines develop an aeroplane maintenance facility in Vietnam.
Patrick Regis, president of Rolls-Royce Vietnam, said the facility was essential for the country's growing aviation industry.
Regis told Thanh Nien Weekly that partners in Singapore and Hong Kong had also proposed similar projects to Rolls-Royce and asked for its support.
However, he said, as an aeroplane engine producer, Rolls-Royce would only offer advice, not join it as a partner.
Rolls-Royce won orders worth US$240 million for engines to power 36 Airbus A321 aircraft last month. Delivery of the aircraft to Vietnam Airlines is scheduled to start in 2011.
Regis said they were competing to win more orders from the carrier.
Vietnam Airlines, which opened the Vietnam Airlines Engineering Company with a chartered capital of VND420 billion ($21.5 million) last year to offer maintenance services, also proposed the project to US airplane producer Boeing.