SK Group reaffirms commitment to Vietnam

November 01, 2023 | 19:41
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One of South Korean largest conglomerates - SK Group - has confirmed its commitment to long-term investment in Vietnam, focusing on strategic partnerships and diversifying into green business sectors, contrary to speculation about its market withdrawal.
SK Group reaffirms commitment to Vietnam

In a recent article published on October 31 by the South Korean newswire, it has been confirmed that SK Group is actively discussing long-term business collaborations with the Vietnamese government and major domestic companies, dispelling rumours within some investment industry circles of its withdrawal from the Vietnamese market.

This move strategically positions Vietnam as SK's Southeast Asian business hub.

Business insiders report that SK executives have recently engaged with top Vietnamese investment partners to discuss new partnership relationships.

"While there may be some investment portfolio adjustments as the Vietnamese industry evolves, our plan is to further strengthen our cooperative relationships in the future," a senior SK official stated. "For example, Masan Group is a key strategic partner, and we aim to continue our collaboration from a long-term perspective. We intend to expand our understanding of them."

Since 2018, SK has formed partnerships with major Vietnamese firms such as Vingroup and Masan Group, investing approximately $2.5 billion across various sectors including distribution, consumer goods, real estate development, and healthcare.

SK's investment of $1.2 billion in Masan Group's main business segments, including its parent company's consumer goods and distribution, marks the largest investment in Vietnam by the group.

The global economic downturn has created some challenges for companies investing in Vietnam, and the recent price fluctuations of key stocks has fuelled speculation within the investment community about a potential withdrawal by SK.

However, these recent talks with local investors have reasserted SK's readiness to collaborate with Vietnamese businesses.

SK's chairman Chey Tae-won also demonstrated a strong commitment to investing in Vietnam. During his recent visit to Vietnam last month, Chey was present at trade fairs where he hosted discussions on digital and green technology initiatives with top Vietnamese officials, including the Prime Minister, at one point declaring, "Vietnam will continue to be a strategic partner as it has been for a very long time."

Subsequently, at an October 30 investor meeting, Masan Group leadership underscored their commitment to SK Group as a crucial long-term ally. They hinted at imminent joint ventures aimed at amplifying mutual shareholder value, with a key emphasis on driving business growth and fortifying financial health.

In addition, SK has recently contributed $30 million to the National Innovation Centre, a move aimed at fostering the growth of Vietnamese startups.

One official noted, "It appears some are speculating that SK, a company that has built trust with the Vietnamese government over 30 years, might exit the local market. The company may adjust its current investment portfolio to focus on new areas like green business, but it will not hastily withdraw its investments."

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