Doosan Vina project in central Vietnam formally taken over by HD Hyundai

After nearly two decades of operations at the Dung Quat Economic Zone in Quang Ngai province, central Vietnam, Doosan Enerbility Vietnam (Doosan Vina) has been comprehensively restructured and formally transferred to a new investor - HD Hyundai Asia Holdings Pte. Ltd.

The Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority last Friday said that the agency has issued an investment registration license for the Doosan Vina project.

HD Hyundai Asia Holdings Pte. Ltd. is a Singapore-registered company whose legal representative is Hong Doohee, a South Korean national. The company is part of HD Hyundai, one of South Korea’s leading heavy industry and energy groups.

The project will be implemented in Vietnam by HD Hyundai Eco Vina Co. Ltd., which has operated in Quang Ngai province since November 2006.

It spans 101 hectares, with about 83.3 hectares set aside for factories, 11.65 hectares for a dedicated port, roughly 2.4 hectares of adjacent water surface, and 4.21 hectares for housing for experts. It aims to establish and operate a large-scale integrated industrial complex at the Dung Quat Economic Zone.

The project is fully equipped to design and manufacture products including boilers for thermal power plants, desalination plants, chemical processing equipment, robots, lifting equipment, turbines for power generation, and components for generators.

Following the adjustment, total investment stands at about VND7.54 trillion ($291 million), an increase of more than VND525 billion from the previous level.

Of the total, equity capital amounts to around VND5.02 trillion ($193.4 million), accounting for 66.57% of the investment, of which VND4.49 trillion has been contributed. Borrowings total over VND2.52 trillion ($97.11 million) and have been fully arranged.

The project has an operating term of 70 years from the date of its initial investment license. Under the plan, new construction and renovation works on the expanded site will complete legal procedures and be carried out between Q3/2025 to Q3/2027.

A raft of incentives for investors

According to the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority, the investor will continue to enjoy the incentives and investment support measures stipulated in the previous investment registration license, provided the required conditions are met.

Specifically, the project is entitled to a corporate income tax rate of 10% throughout its duration, with a four-year tax holiday from the time taxable income is generated, followed by a 50% reduction in payable tax for the subsequent nine years.

The investor is also exempt from land and water surface rental fees for areas used to build factories and the dedicated port and housing for experts, as well as from import duties on goods used for the project in line with current regulations.

In addition, the project is eligible for other investment incentives and support measures provided under prevailing laws.

At a recent meeting with permanent Deputy Prime Minister Nguyen Hoa Binh, Seunghyun Choi, CEO of HD Hyundai Eco Vina, outlined the company’s business strategy for the coming period.

He said the company plans to hire around 1,500 additional workers on top of the roughly 1,400 employees transferred from Doosan Vina, bringing its total workforce in Vietnam to nearly 3,000.

Doosan Vina has been one of Quang Ngai province’s flagship foreign-invested enterprises, with total investment of about $300 million. The complex comprises three factories producing equipment for power plants, port cranes, desalination systems, crude fuel processing equipment, modules, and steel structures.