Z111 Factory
Z111 Factory is a Vietnamese state-owned defense manufacturing facility specializing in firearms, weapons components, and precision mechanical production.
Last updated August 26, 2026
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Overview
Z111 Factory, formally registered as the 11 Precise Mechanical One Member Liability Company, is a Vietnamese state-owned defense and precision-engineering facility based in Thanh Hóa. It is owned by the Vietnamese Ministry of Defence and forms part of Vietnam’s defense-industrial system. The factory supplies weapons and related equipment to the People’s Army of Vietnam and has historically contributed to the country’s effort to maintain domestic capabilities in small-arms manufacture, repair, modernization, and component production. The facility was established on 1 March 1957 at Yên Bái under the name Z1 Factory. Its original responsibilities included repairing firearms, artillery, and optical equipment for military training, readiness, and combat operations. Technical and logistical assistance from socialist countries helped establish the factory’s early industrial base. During the Vietnam War, the plant became an important center for small-arms work, producing or adapting weapons for Vietnamese military requirements. Its activities included locally modified designs such as the K-50M submachine gun, based on the PPSh-41, and modifications of the MAT-49. It also produced limited quantities of weapons and equipment associated with the SKS, AK-47, RPG-2, K-66 mortar, and TUL-1 light machine gun families. After the war, Z111 expanded from repair and adaptation toward the manufacture and modernization of more contemporary military firearms. Soviet technical support contributed to production associated with the AKM. The factory later developed domestically modified weapons, including the K14-VN pistol, an enlarged-capacity development of the K-54 design. Research and development for the K14-VN began in 2001, and the pistol entered Vietnamese military service in 2014. Z111 also reconditioned XM177E2 carbines recovered during the war as the M18, a compact weapon reported for use by Vietnamese special forces and Vietnam Coast Guard personnel. International industrial cooperation became increasingly important in the factory’s later development. On 3 February 2014, Israel Weapon Industries and Vietnam reached an agreement for licensed production of the IWI ACE family at a joint production facility. Z111 has also been associated with the manufacture of components for IWI products. This cooperation supported the introduction of modern production methods and broadened the factory’s technical base beyond legacy Soviet-pattern equipment. The factory’s modernization program has included both upgrades of existing weapons and development of new rifles. In 2015, it announced the STL-1A, an upgraded and, in some cases, newly manufactured rifle derived from the AKM. The design incorporated polymer handguards, a folding stock, an ergonomic pistol grip, an updated muzzle brake, and compatibility with M203-type grenade launchers. In 2018, the OSV-96 was reported as being produced in Vietnam under license. In 2019, Z111 presented the STV-215 and STV-380 rifles, based on the Galil ACE family and intended to become standard service rifles for the Vietnamese Army. Further STV variants, the STV-410 and STV-416, were shown in 2020 as technology demonstrators and potential commercial products. Z111’s current identity is therefore that of a military-industrial manufacturer rather than a consumer-facing commercial brand. Its capabilities include firearms production, overhaul and conversion of existing weapons, manufacture of weapon components, and precision mechanical processing. The factory has invested in barrel cold forging, CNC machining, and other advanced manufacturing techniques to improve domestic production capacity. Public information about its management, finances, output volumes, and commercial sales is limited, reflecting its ownership and role within Vietnam’s defense sector.
History
Z111 Factory was established on 1 March 1957 in Yên Bái as Z1 Factory. Its initial mission was to repair firearms, artillery, and optical equipment for the Vietnamese Army. The factory received technical and logistical support from socialist countries, helping Vietnam create an indigenous defense-industrial foundation during the country’s period of war and national division. During the Vietnam War, the factory became a significant center for small-arms repair, adaptation, and production. It developed locally modified weapons, including the K-50M submachine gun, derived from the PPSh-41, and modifications of the MAT-49. It also produced limited numbers of weapons associated with the SKS, AK-47, RPG-2, K-66 mortar, and TUL-1 light machine gun families. These activities established the plant as an important source of domestically maintained and manufactured infantry equipment. Following the war, Z111 moved toward more systematic production and modernization. With assistance from the Soviet Union, it became associated with production of more modern firearms, including AKM-pattern weapons. The plant also worked on domestic adaptations of older designs. One prominent example was the K14-VN pistol, whose development began in 2001. The weapon improved on the K-54 pattern with a wider grip and a 13-round double-stack magazine, and it entered Vietnamese service in 2014. Z111 later developed the M18 by reconditioning XM177E2 carbines seized during the Vietnam War. Its compact dimensions made it suitable for reported use by Vietnamese special forces and Vietnam Coast Guard personnel. The factory also expanded into licensed cooperation with foreign defense companies. On 3 February 2014, Israel Weapon Industries entered an agreement with Vietnam to produce the IWI ACE rifle family under license. Production took place at a joint facility, while Z111 was also reported to manufacture components for IWI products. In 2015, Z111 announced the STL-1A rifle. The design involved both conversion and modernization of existing AKM rifles and production of new rifles. Its publicly described features included polymer handguards, a folding stock, a revised pistol grip, an AK-74-style muzzle brake, and the ability to accept M203 grenade launchers. In January 2018, the OSV-96 was reported to be produced under license in Vietnam. The factory’s most visible recent rifle program is the STV family. In 2019 it revealed the STV-215 and STV-380, based on the Galil ACE and intended as new standard rifles for the Vietnam People’s Army. The STV-410 and STV-416 followed in 2020 as additional variants presented for technology-demonstration and possible commercial purposes. In its contemporary role, Z111 combines military production with precision engineering. The factory has introduced barrel cold forging, CNC machining, and other advanced processes. It also continues to replicate, overhaul, and substantially modify firearms already used by Vietnam’s armed forces. Its ownership by the Ministry of Defence and its limited public disclosure mean that detailed information about leadership, budgets, production volumes, and customers remains unavailable in the cited public material.
- 2020
STV-410 and STV-416 are revealed
[1]Two additional STV variants are presented as technology demonstrators and potential commercial products.
- 2019
STV-215 and STV-380 are revealed
[1]Z111 presents two Galil ACE-based rifles intended for standard-issue use by the Vietnam People’s Army.
- 2018
OSV-96 licensed production is reported
[1]The OSV-96 is reported to be produced under license in Vietnam.
- 2015
STL-1A is announced
[1]Z111 announces an AKM-derived rifle modernization and production program designated STL-1A.
- 2014
IWI ACE licensing agreement
[1]Vietnam and Israel Weapon Industries agree on licensed production of the IWI ACE at a joint facility.
- 2014
K14-VN enters service
[1]The K14-VN begins service with Vietnamese armed forces on 10 May.
- 2010
M18 reconditioning program
[1]Z111 is reported to begin reconditioning XM177E2 carbines recovered from the Vietnam War as the compact M18.
- 2001
Development of the K14-VN begins
[1]Research and development starts on a locally improved pistol based on the K-54 design.
- 1957
Z1 Factory is established
[1]The facility is founded on 1 March at Yên Bái to repair firearms, artillery, and optical equipment for the Vietnamese Army.
Products and positioning
A state-owned Vietnamese defense manufacturer focused on domestic military supply, small-arms self-reliance, licensed technology transfer, weapons modernization, and precision mechanical production.
Pistol · 2014
K14-VN
A Vietnamese development of the K-54 pistol. The K14-VN uses a wider grip and a 13-round double-stack magazine, and was developed for service use by Vietnamese armed forces. Development began in 2001 and the pistol entered service in 2014.
Compact carbine · 2010
M18
A reconditioned and refurbished weapon based on XM177E2 carbines recovered during the Vietnam War. Its compact format has been associated with reported use by Vietnamese special forces and Vietnam Coast Guard personnel.
Assault rifle · 2015
STL-1A
An AKM-derived rifle modernization program involving both conversion of older rifles and manufacture of new examples. Reported changes include polymer handguards, a folding stock, an ergonomic pistol grip, an updated muzzle brake, and compatibility with M203 grenade launchers.
Assault rifle · 2019
STV-215
A rifle based on the Galil ACE family and presented as part of Vietnam’s effort to field a new standard infantry rifle. It was revealed by Z111 in 2019 alongside the STV-380.
Assault rifle · 2019
STV-380
A Galil ACE-based rifle revealed in 2019 as part of the STV family. It was presented as a candidate for standard issue with the Vietnam People’s Army.
Assault rifle · 2020
STV-410
An additional STV-family variant revealed in 2020. Public descriptions characterize it as a technology demonstrator and possible commercial product rather than confirming a broad service rollout.
Assault rifle · 2020
STV-416
A further STV-family variant shown in 2020. It was introduced for technology-demonstration and potential commercial purposes, with limited public information about procurement or production scale.
Licensed assault rifle · 2014
IWI ACE
A rifle family produced in Vietnam through a licensing and joint-production arrangement involving Israel Weapon Industries. Z111 was also reported to manufacture selected components for IWI products under the broader cooperation.
Large-caliber rifle · 2018
OSV-96
A large-caliber weapon system reported in Vietnamese licensed production in 2018. The available reference material does not specify production quantities or the full scope of Z111’s manufacturing role.
Brand decisions
2020
Expansion of the STV familyProduct launchBackground
Z111 continued exploring variants and configurations related to its modern rifle platform.
Action taken
The factory revealed the STV-410 and STV-416 as technology demonstrators and possible commercial products.
Aftermath
Publicly available information does not establish the production scale, procurement status, or long-term service adoption of these variants.
2019
Introduction of STV standard-rifle candidatesProduct launchBackground
Vietnam pursued a newer domestically produced service rifle based on technology obtained through cooperation involving the Galil ACE family.
Action taken
Z111 revealed the STV-215 and STV-380 and presented them as intended standard-issue rifles for the Vietnam People’s Army.
Aftermath
The STV family became the factory’s most visible modern rifle line, followed by additional variants in 2020.
2015
AKM modernization through the STL-1AGeneration changeBackground
Vietnam required updated infantry rifles while retaining the practical and industrial advantages of its existing AKM inventory.
Action taken
Z111 announced the STL-1A, combining conversions of older AKM rifles with production of new rifles and adding updated furniture, stock, muzzle-device, and grenade-launcher features.
Aftermath
The program represented an intermediate modernization path before the appearance of newer STV-family rifles.
2014
Licensed production partnership with IWIM&ABackground
Vietnam sought to expand domestic production of modern infantry weapons and strengthen defense-industrial capabilities through foreign technical cooperation.
Action taken
Vietnam and Israel Weapon Industries agreed to produce the IWI ACE under license at a joint facility associated with Z111, with additional component manufacturing reported.
Aftermath
The arrangement broadened Z111’s production base and supported its later association with Galil ACE-derived Vietnamese STV rifles.
Sources1 sources
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