Korean giants SK, Hyosung, Lotte, Doosan, Hanwha, Posco to up Vietnam investments

South Korean chaebols including SK, Hyosung, Lotte, Doosan and Posco will make more long-term investments in Vietnam, focusing on green and sustainable growth, energy transition, wind power and gas-fired power.

The commitment was made by business executives at a Monday meeting with Vietnamese Prime Minister Pham Minh Chinh, who is on a June 30-July 3 visit to South Korea.

SK Group

At the Vietnam-South Korea business forum held in Seoul on Monday, Chinh witnessed the signing of several memoranda of understanding (MoU) between the two sides, including one between South Korea’s SK Group, Vietnam’s T&T Group and Quang Tri province, focusing on green growth and energy transitio

Quang Tri authorities had agreed in April to let a South Korea-Vietnam joint venture study the feasibility of a coal-to-LNG conversion for a thermal power plant project in the province.

The predecessor of the LNG-fired thermal plant is the $2.3 billion, 1,320-MW Quang Tri I coal-fired power plant. This plant was to be built and operated by EGAT International (EGATi), a wholly-owned subsidiary of the Electricity Generating Authority of Thailand. Construction of the project began in November 2019, but little progress has been made since and the process is on to terminate it.

Hyosung

The forum also saw South Korean conglomerate Hyosung and Vietnam’s private multi-sector business Sovico sign an agreement on researching and investing in sustainable development, data center, finance-technology (fintech), renewable energy, finance, smart city, logistics and real estate.

At a separate meeting with PM Chinh, Hyosung chairman Cho Hyun-joon said the conglomerate had been investing in Vietnam since 2007 and the investment had reached $5.1 billion at present. The firm’s revenue from activities in Vietnam was $3.5 billion in 2023, he said.

He said Hyosung was planning to invest $300 million in building a data center in Ho Chi Minh City.

Meanwhile, Hyosung Core Materials, a $550-million investment in Vietnam’s southern province of Ba Ria-Vung Tau in bioproducts, particularly carbon fiber, was set to begin operations in 2025, he added.

PM Chinh said Vietnam would facilitate Hyosung’s investments and called the firm to focus more on environmental protection, helping Vietnamese businesses join its supply chain and utilizing Vietnamese materials, and ensure welfare for workers.

Lotte

In his meeting with PM Chinh, Lotte Group chairman Shin Dong-bin noted that the South Korean conglomerate had been investing in Vietnam since 1996, with major projects including Lotte Thu Thien smart city in Ho Chi Minh City and Lotte Mall West Lake in Hanoi.

Shin Dong-bin made some recommendations regarding the two major projects and affirmed that Lotte was seeking more large project investment opportunities in Vietnam.

Chinh responded that Vietnam would welcome Lotte’s investments in smart cities that can help boost tourism. He said that the government would provide guiding decrees for three newly amended laws for the real estate sector. He said these would have suitable land use and rental provisions to ensure the rights and benefits of investors.

Doosan, Posco

At a business roundtable on Monday, Jung Yeoin, chairman of Doosan Enerbility, said the firm, which has been investing in Vietnam since 2006, seeks further cooperation with Vietnam, especially in wind power and gas-fired power. Doosan Enerbility can supply equipment like turbines for power factories, he said

Power generation was a key collaboration area between the two countries and Doosan Enerbility was willing to transfer technology and provide professional training for Vietnam, he added.

Meanwhile, Lee Kye-in, chairman of Posco International, noted that the giant has joined the 1,080-MW Mong Duong 1 thermal power plant project in the northern province of Quang Ninh. Posco International sought similar cooperation with the Quynh Lap LNG-to-power project in the central province of Nghe An, he added.

Hanwha Aerospace

Also at the business roundtable, Jung In Sup, CEO of Hanwha Aerospace, said the firm aimed to provide engine repair and maintenance services to fulfill high demand in Vietnam. He pointed out that many major carriers in Vietnam were carrying out aircraft engine repairs and maintenance in Singapore and the United States.

Chinh said Vietnam would welcome investments in aircraft engine repair and maintenance. With the mega Long Thanh airport under construction, demand for these services is set to increase dramatically, he noted.

Minister of Planning and Investment Nguyen Chi Dung also called on South Korean businesses to invest more in Vietnam, especially in the high-tech sector, digital infrastructure, green transitions in energy, transportation, and other fields.

Minister of Industry and Trade Nguyen Hong Dien said Vietnam was actively encouraging investments in new energy and will welcome investments from South Korean businesses in this industry.