Korean chaebols envision long-term future in Vietnam

During his ongoing official visit to South Korea, Prime Minister Pham Minh Chinh hosted separate receptions for leaders of Hyosung and Lotte groups in Seoul on July 1.

At the meeting with Hyosung's Chairman Cho Hyun-joon, the PM welcomed Hyosung's plans to expand investments in raw material industries, industrial power systems, data centers, and biofuels. He assured that the Vietnamese Government will create favorable conditions for Hyosung's business activities in Vietnam.

The Vietnamese government leader also urged Hyosung to prioritize environmental protection, enhance collaboration with domestic enterprises to integrate into value chains, increase the use of locally producible materials, and ensure welfare benefits for workers.

The PM expressed support for the signing of an MoU between Hyosung and Ba Ria-Vung Tau province to develop the province into a hub for biotechnology and advanced materials production in Vietnam and the region. In case of implementation challenges, relevant authorities are to be promptly notified for resolution.

Highly appreciating Hyosung Group's effective investment and business activities in Vietnam across industries such as industrial manufacturing, construction, commerce, information technology, and biotechnology, PM Pham Minh Chinh recognized their corporate social responsibility initiatives, which have made positive contributions to Vietnam's socio-economic development.

Hyosung's Chairman Cho Hyun-joon, for his part, emphasized that Hyosung Group envisions its future for the next 100 years in Vietnam, with its Data Center in Ho Chi Minh City utilizing the most advanced and cutting-edge technologies.

According to the group's leader, since 2007, Hyosung has invested nearly $5.1 billion in Vietnam through 8 companies and 1 subsidiary, employing approximately 9,000 people. Its revenues in Vietnam reached $3.5 billion in 2023.

On this occasion, the Hyosung leader briefed on their operations and business environment in Vietnam, seeking insights into Vietnam's policies and development directions. He also updated on the progress of the bioproduct manufacturing project (Hyosung Vina Core Materials) in Ba Ria-Vung Tau province, which has been under construction and scheduled to to be put into commence operations in 2025, with a total investment of $550 million. Additionally, plans were outlined to invest in constructing a modern Data Center with a total capital of $300 million in Ho Chi Minh City.

In the upcoming period, Hyosung will emphasize key sectors including hydrogen production, environmentally friendly projects (such as recycling raw materials and using eco-friendly materials), carbon fibers, data centers, bioproducts, electric vehicle tires (EV), gas insulated switchgear (GIS), energy storage systems (ESS), and smart cities, the Hyosung leader said. 

Established in 1966, Hyosung operates in textiles, construction, industrial materials, information technology, industrial power systems, construction, and chemicals. It stands as a leading conglomerate in South Korea, achieving a revenue of $16.2 billion in 2023 with a profit of around $400 million.

During the meeting with Mr. Shin Dong-bin, Chairman of Lotte Group, PM Pham Minh Chinh highly valued Lotte Group's investment and business activities in Vietnam, noting that Vietnam welcomes and hopes Lotte will continue to expand its investments in key areas such as smart urban development, contributing to tourism promotion.

The Vietnamese Government will accompany and support Lotte in its investment and development of large-scale projects, he said.

Regarding related proposals from the group, the PM mentioned that amendments to the Land Law, Law on Real Estate Business, and Law on Housing will take effect from August 1st, and the Government will issue decrees on land use fees and rents, in accordance with legal regulations and ensuring the legitimate rights of investors.

Lotte began investing and conducting business in Vietnam since 1996. By 2018, the Group's revenue in Vietnam reached $6.7 billion. Lotte initiated the construction of the Lotte Eco Smart City in Thu Thiem (Ho Chi Minh City) in September 2022 and has invested in the Lotte Mall Westlake Hanoi project.

At the meeting, the Lotte leader expressed confidence in Vietnam's continued robust development, highlighting its role as a global economic standout and the mutual development prospects between the two countries. He presented proposals regarding the Lotte Thu Thiem and Lotte Mall Hanoi projects, expressing Lotte's desire to have opportunities to invest in large-scale projects in Vietnam.

Established in 1967, Lotte is the fifth-largest multinational conglomerate in South Korea, with a presence in over 30 countries across Asia, Europe, and the United States. In 2022, the company employed about 40,000 people abroad, achieving a revenue of $62.9 billion.