South Korean conglomerates are actively expanding their presence in a diverse array of green and high-tech ventures in Vietnam. Hyosung Group, a major South Korean industrial conglomerate, has revealed intentions to invest $720 million in a biotech fiber manufacturing plant in Vietnam.
This development was unveiled during a meeting on December 4 between Nguyen Van Tho, Chairman of the People’s Committee of the southern province of Ba Ria-Vung Tau, and representatives from Hyosung.
Kim Kyung Hwan, CEO of Hyosung Vietnam, shared that the progress of the carbon Vietnam fiber plant in Phu My II Industrial Park is noteworthy. This project underscores Hyosung’s dedication to advancing material production.
The proposed biotech fiber facility signifies Hyosung Corporation’s inaugural global venture into eco-friendly technology for Spandex fabric production. This initiative aligns with the group’s broader strategy of diversifying its manufacturing portfolio and reinforcing its environmental commitments.
Earlier, Hyosung Vietnam had announced plans for an investment of approximately $1 billion in a carbon fiber plant within the same industrial park, with an initial investment phase of about $160 million.
In a separate case, LG Innotek, a subsidiary of the electronics giant LG, is poised to become the inaugural investor breaking ground at Trang Due 3 Industrial Park in the northern port city of Haiphong. Currently, Kinh Bac City Group is actively working to complete the legal procedures for Trang Due 3 Industrial Park to be prepared to welcome investors in the first quarter of 2024, with 200 hectares in the park already cleared.
Additionally, South Korean conglomerates like Samsung Electronics and SK Group view Vietnam as a strategic manufacturing hub and have plans to expand their operations in the country.
According to statistics from the Korean Chamber of Commerce in Vietnam, 9,000 South Korean enterprises are investing in Vietnam, engaging not only in traditional sectors but also in emerging fields such as AI, IT, the environment, and green growth, with approximately $1.3 billion invested in renewable energy. South Korean enterprises have made significant contributions in high technology, the electronics industry, energy, automobiles, and construction.
However, Vietnam still faces challenges in streamlining legal procedures to facilitate smooth disbursement. Following the announcement of Hyosung’s $720 million investment in Ba Ria-Vung Tau, investors have expressed goodwill through ongoing meetings with provincial leadership.