Hyosung Deepens Investment in Vietnam, Eyes Biofuels and ATMs
The South Korean conglomerate, already a major investor in Vietnam, plans to further expand its presence in the country with new projects in advanced materials, biofuels and ATMs. The move comes as Vietnam solidifies its position as a manufacturing powerhouse in Southeast Asia.
Hyosung Group, South Korea's third-largest foreign direct investor in Vietnam, is doubling down on its commitment to the Southeast Asian nation.
During a meeting with Vietnamese Deputy Prime Minister Le Minh Khai on May 10, Hyosung's Vice Chairman and CEO, Lee Sang Woon, unveiled the conglomerate's ambitious plans for expansion.
The move comes as Vietnam continues to attract significant foreign investment, thanks to its stable political environment, competitive labor costs, and strategic location.
Hyosung's Expanding Footprint in Vietnam
Hyosung has been a key player in Vietnam's economic landscape since 2007, investing over USD 4 billion in various sectors, including raw materials, textiles, chemicals, and industrial electrical systems.
Most of the group's Korean factories have already been relocated to Vietnam, demonstrating its confidence in the country's manufacturing capabilities and business environment.
The company's latest venture is a USD 730 million carbon fiber factory in Ba Ria-Vung Tau province, focusing on advanced materials and environmentally friendly bio-BDO biological products.
This state-of-the-art facility, touted as the most modern of its kind globally, is expected to contribute significantly to Vietnam's growing high-tech manufacturing sector.
Hyosung's expansion in Vietnam aligns with the country's broader economic goals.
Vietnam has been actively seeking to move up the value chain, transitioning from low-cost manufacturing to higher-value industries such as electronics, renewable energy, and advanced materials.
Hyosung's investments in these sectors are helping to drive this transformation and create a more diversified and resilient economy.
Expanding into Biofuels and ATMs: A Strategic Move
Hyosung's expansion plans don't stop there. The company is exploring opportunities in the biofuels sector, a move that aligns with Vietnam's increasing focus on renewable energy and sustainable development.
Additionally, Hyosung aims to establish a large data center in Ho Chi Minh City's high-tech park, tapping into the growing demand for digital infrastructure in the region.
Notably, Hyosung, the world's third-largest ATM manufacturer, is seeking government support to invest in a factory producing ATMs in Vietnam.
This strategic move could potentially contribute to the modernization of the country's banking system and reduce its reliance on imported ATMs. Moreover, it would create jobs and further strengthen the economic ties between South Korea and Vietnam.
Government Support and Future Outlook
Deputy Prime Minister Khai welcomed Hyosung's continued investment and reaffirmed the Vietnamese government's commitment to improving the investment environment for foreign businesses.
He encouraged the company to prioritize environmental protection, collaborate with local businesses, utilize Vietnamese raw materials, and ensure worker welfare.
This emphasis on sustainable and socially responsible business practices reflects Vietnam's growing awareness of the need to balance economic development with environmental and social considerations.
Khai also addressed Hyosung's interest in the banking sector, suggesting further discussions with the State Bank of Vietnam and the Ministry of Finance to explore specific opportunities and facilitate the company's investments in the country.
This open dialogue and willingness to collaborate with foreign investors demonstrate Vietnam's proactive approach to attracting and retaining foreign direct investment.
As Hyosung's presence in Vietnam continues to grow, its investments are expected to boost the country's economy, create jobs, and foster technological advancements in key sectors.
The conglomerate's focus on advanced materials, biofuels, and financial technology aligns with Vietnam's development goals, making it a valuable partner in the nation's continued progress.
With its strong track record and ambitious expansion plans, Hyosung is poised to play an even more significant role in shaping Vietnam's economic future.
