South Korea's leading textile and chemicals firm, Hyosung Group, intends to invest $6 billion to enable Vietnam to become a global manufacturing base for the chemicals and heavy industries.
|A view of Hyosung plant located at Nhon Trach Industrial Zone in Dong Nai province |
Cho Hyun-joon, chairman of Hyosung Group, said that the group commits to strengthening co-operation with Vietnam, not only in processing spandex and yarn for automotive tires, but also in the chemicals and heavy industries. Their detailed plan for expanding investment has been outlined.
Last year, Hyosung poured a total of $1.3 billion into a polypropylene manufacturing plant and liquefied petroleum gas (LPG) underground storage in Cai Mep Industrial Zone of Ba Ria-Vung Tau province. Besides, Cho Hyun-joon revealed that Hyosung is considering establishing a production plant in Quang Nam province.
Hyosung has set out a strategy for semi-finished products in Vietnam based on cost competitiveness. The semi-finished products will be turned into finished products at a plant in Changwon, South Korea, then will be exported to other countries. This strategy will raise export value as well as improve the productivity of the plants in South Korea.
|When the projects are complete, Hyosung Vietnam could supply products for all segments of the world market. |
Expanding investment in chemicals and heavy industry will enable Vietnam to become a global manufacturing base for both, with various plants producing four major product groups.
“When the projects are complete, Hyosung Vietnam could supply products for all segments of the world market,” noted a representative of Hyosung Group.
At a meeting with Prime Minister Nguyen Xuan Phuc on February 8, chairman of Hyosung Group also mentioned infrastructure projects in Vietnam. He said that the group has considerable experience in the implementation of power construction and transmission projects. Hyosung’s technical foundations, along with technology transfer, will enable Vietnam to become an exporter of transformers rather than an importer.
He also intends to co-operate with other firms and promote IT projects in the fields of energy storage system (ESS), ATM, e-payment, and fintech. The two countries expect to hold Korea Investment Forum to further lure Korean investors to Vietnam.
Earlier, in 2007, Hyosung poured $1.5 billion into a plant at Nhon Trach 5 Industrial Zone to produce textiles and core industrial raw materials, such as spandex yarn, yarn for automotive tires, steel, and electric motorcycles. This plant is based on an area of 90,000 square metres and has 7,000 workers.
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