South Korean Aerospace Parts Supplier, KP Aero Industries Co., Ltd., announced on Wednesday its intention to invest $20 million in a new factory in Vietnam for assembling components destined for Boeing aircraft. This strategic move aims to further enhance Boeing’s manufacturing presence in the Southeast Asian nation.

The U.S. aviation giant already collaborates with seven “sub-tier” suppliers, companies that provide components to its primary suppliers, in Vietnam.

In September, Boeing secured a preliminary agreement with Vietnam Airlines for the purchase of 50 Boeing 737 Max 8 jets, strengthening ties between the two entities.

Lee Young-su, a senior official at KP Aero, informed Reuters that the company plans to invest an initial $20 million by 2028 to assemble components for Boeing 787 and 737 aircraft.

KP Aero is set to receive formal authorization later this week to invest $20 million in Vietnam, according to a statement from authorities in the central city of Da Nang on Wednesday.

A Vietnamese official specified that the investment will be directed to the city’s high-tech industrial park.

Notably, KP Aero currently supplies parts to Korean Air’s engineering division, which, in turn, serves as a direct supplier to Boeing.