South Korean giant Hyosung, which has invested $3.5 billion in Vietnam, plans to invest another $2 billion this year, said vice chairman Cho Hyun-sang.
The senior executive stated this Wednesday at a Davos workshop on “Opportunities to realize the potential of Vietnam’s financial markets” held during Prime Minister Pham Minh Chinh’s Switzerland visit. Many other South Korean firms also plan to invest and mark their presence in Vietnam, he added.
Cho attributed the move to efficacy of investments in Vietnam backed particularly by strong leadership of central authorities, support of local authorities and the diligence and seriousness of Vietnamese people.
Established in May 2007, Hyosung Vietnam has so far invested in manufacturing tire cord, spandex, steel cord, technical yarn, nylon, polytetramethylene ether glycol (PTMG), and motors.
The Vietnam subsidiary recorded a profit of KRW121.4 billion ($94.35 million) from revenues of KRW2,123.1 billion ($1.65 billion) in 2022, according to the parent company’s financial statements.
Hyosung’s investment in Vietnam includes $1.9 billion in Dong Nai province, $1.4 billion in Ba Ria-Vung Tau province (in the south), $200 million in the central province of Quang Nam; and $100 million in the northern province of Bac Ninh.
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 will have an annual capacity of 4,800 tons in the first phase, which is scheduled to begin operations in February 2025. An additional capacity of 7,200 and 9,600 tons will be added in the second and third phases starting December 2028 and December 2031, respectively.
In December 2023, Hyosung announced plans to invest $720 million more 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.