Hyosung projects in Quang Nam delayed due to land and compensation barriers

September 18, 2024 | 12:13

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South Korea's Hyosung Group is facing land rent and compensation barriers as it attempts to implement its $1.3 billion investment commitments in the central province of Quang Nam.

Hyosung projects in Quang Nam delayed due to land and compensation barriers

In mid-September, Hyosung sent a document to Quang Nam People’s Committee to ask the province to resolve pending issues to implement its expanded projects.

The investor has already developed a high-strength industrial polyester and nylon yarn plant for automobile-support industries in 2018, and its first plant started operations in early 2019.

In April, Hyosung received an investment certificate to adjust the project for the fourth time, which would increase the area to 21 hectares and the investment to $410 million. The two facilities are located in Tam Thang Industrial Park (IP).

The group is also working on the third phase of the project, which is expected to be completed in the fourth quarter of this year.

However, Hyosung is facing barriers for the third and fourth phases.

According to the investor, the province has failed to update a priority list of sectors that it wants to invest in the IP. In addition, a decision to hand over the land and rental prices is pending.

Hyosung also has plans to develop an automotive interiorfactory worth $110 million in the IP. Construction was expected to start in the second quarter of 2025, but once again, the issue of priority sectors is impeding the plan.

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