Hyosung plans $400 mln aviation fuel investment in southern Vietnam

South Korean industrial chaebol Hyosung plans to invest $400 million in a hydro-treated vegetable oil (HVO) project for manufacturing aviation fuel in the southern coastal province of Ba Ria-Vung Tau.

A Hyosung delegation delivered an official project proposal at a Wednesday meeting with provincial authorities. The project will cover 8.4 hectares at Phu My 2 Industrial Park and have an annual output of 234 million tons.

The project will conduct hydro-processing of refined biomaterials such as used cooking oil, fish oil, palm oil and animal fat, to manufacture HVO, also known as a renewable diesel. The progress can help reduce carbon emissions by 73-84% more than normal fuels, Hyosung said.

The chaebol also committed to protect the environment during project implementation.

Ba Ria-Vung Tau Chairman Nguyen Van Tho said the province welcomed green projects using modern technology. He asked relevant provincial departments to cooperate with Hyosung in completing administrative procedures.

Hyosung, which has invested $3.5 billion in Vietnam, had said last month that it plans to invest another $2 billion this year in the country. The chaebol’s vice chairman Cho Hyun-sang had mentioned the plan at a Davos workshop held during Prime Minister Pham Minh Chinh’s Switzerland visit.

In July 2023, the company said it plans to invest $1 billion in a carbon fiber factory at the Phu My 2 Industrial Park, Ba Ria-Vung Tau.

In October 2023, it received in-principle approval from Ba Ria-Vung Tau's industrial park authority to build a $540 million carbon fiber factory. The factory would have an annual capacity of 4,800 tons in the first phase, which was scheduled to become operational in February 2025. An additional capacity of 7,200 and 9,600 tons would be added in the second and third phases starting December 2028 and December 2031, respectively.

In December 2023, Hyosung announced plans to invest an additional $720 million in Ba Ria-Vung Tau for a biofiber factory. This is set to become the world’s first project to use raw sugar to manufacture biofiber, a material used for spandex fiber.