Korea’s Hyosung eyes ATM production, data center in Vietnam

Multi-industry conglomerate Hyosung, the third largest South Korean investor in Vietnam after Samsung and LG, plans to manufacture automated teller machine (ATMs) and build a large data center in Ho Chi Minh City.

Lee Sang Woon, Hyosung’s vice chairman and chief operations officer, revealed the corporation’s plans at a meeting with Deputy Prime Minister Le Minh Khai in Hanoi on Friday.

Lee proposed some solutions for the corporation’s potential ATM production plant in Vietnam and asked for support from the Vietnamese government. Hyosung is now the third largest ATM producer globally.

He also expressed Hyosung’s intention to join the modernization process of Vietnam’s banking system, the government’s news portal reported without providing further details.

Hyosung has transferred nearly all its factories in South Korea to Vietnam, Lee informed.

The conglomerate has invested more than $4 billion in Vietnam, focusing on raw materials, chemicals, industrial power systems, and textiles, among others.

Its latest investment is a $730-million bio-based (1,4 Butanediol) BDO production plant in the southern province of Ba Ria-Vung Tau, which is currently the most modern of its kind in the world.

Lee also asked for the Vietnamese government’s support with import taxes on input raw materials.

For his part, Khai welcomed Hyosung's expansion to industries like raw materials, power systems, data centers, and biofuels. He asked Hyosung to pay attention to environmental protection, enhance linkages with Vietnamese firms, and utilize materials that are available in Vietnam.

Khai recognized Hyosung's interest in joining the modernization of the domestic banking system and suggested the company work with the State Bank of Vietnam and the Ministry of Finance to discuss specific details.

South Korea is the largest foreign investor in Vietnam, with 9,957 operational projects worth a combined $87 billion.

Vietnam is home to 32 data centers, mostly owned by four domestic companies, namely Viettel, VNPT, FPT and CMC. Its cloud and data center industry is one of the fastest growing in the world, according to Savills Vietnam.

Compared to mature Asian markets such as Singapore, Japan, China, and South Korea, Vietnam is still in its infancy and has the biggest shortage of data center infrastructure globally in terms of population, said Cushman & Wakefield analysts in March.

While major international cloud service providers have not yet established their presence here, several international carriers are present through cooperation with local telecommunications companies.