S Korean magnet producer Novatech eyes investment in northern Vietnam

South Korean magnet solutions firm Novatech plans to invest in Hung Yen and will soon meet local authorities to accelerate the implementation of a project in the northern Vietnam province.

The plan was announced by Novatech chairman Oh Choon Teak during an investment and trade promotion program held in Seoul on Monday by the Vietnam Trade Promotion Agency, the Hung Yen People's Committee, and Vietnamese businesses.

Details of the project, including its business sector, investment value, site, land requirement, and implementation timeline, have yet to be disclosed.

Also on Monday, representatives of Hung Yen province and its Hai Long Industrial Park visited Novatech's headquarters in South Korea, where they presented the province's investment climate, business opportunities, and incentive policies in an effort to attract the company's investment into local industrial parks.

Novatech said it hopes to receive policy support and investment incentives from Hung Yen and its Thai Binh Economic Zone.

Founded in South Korea in 2007, Novatech specializes in research, design and manufacture of application magnets and magnet-based products. Its core product portfolio includes neodymium-iron-boron (NdFeB), samarium-cobalt (SmCo) and ferrite magnets, while its research activities also cover core materials and electronic components.

The company already has operations in Vietnam through Novatech Vina Co., Ltd., established on December 25, 2018. Its manufacturing facility is located at Que Vo III Industrial Park in the northern province of Bac Ninh.

According to the company's environmental permit application submitted in May 2026, the facility occupies a 15,077-square-meter leased site with completed infrastructure.

Project documents show total investment has increased to VND363.65 billion ($13.85 million), significantly higher than the initial VND116.37 billion ($5 million) approved when the project received its investment registration certificate in 2018.

The facility manufactures and processes magnet-based products used in tablet computers, tablet casings, and other electronic devices, with a designed annual production capacity of 6,573 metric tons.

The project's environmental impact assessment (EIA) was approved by the Bac Ninh Department of Natural Resources and Environment in December 2020. It later received an environmental permit from the provincial People's Committee in January 2023, while provincial authorities completed inspections of the project's trial operation of waste treatment facilities in May 2023.

Project documents classify the facility under the materials manufacturing and mechanical engineering sector, which is listed among industries with potential environmental pollution risks under Vietnamese regulations.

Hung Yen prioritizes high-tech investment

During the investment promotion program, Hung Yen officials highlighted the province's strategic location within Vietnam's Northern Key Economic Region, citing its connectivity to Hanoi, major industrial centers, and seaports.

The province is prioritizing investment in industrial parks, logistics infrastructure, and regional transport networks while seeking high-value projects in sectors including high technology, semiconductors, electronics, precision engineering, digital infrastructure, green energy, modern logistics, and smart urban development.

According to figures presented during a meeting with the Korea Chamber of Commerce and Industry (KCCI), Hung Yen hosts about 210 South Korean investment projects with combined registered capital of about $2.9 billion.

The Vietnam Trade Promotion Agency, Hung Yen authorities, and KCCI discussed cooperation on sharing investment information, connecting South Korean companies with industrial parks in Vietnam and organizing investment surveys.

The parties also exchanged experience in developing green and smart industrial parks while matching South Korean investors' requirements with Hung Yen's industrial land, infrastructure and investment priorities.

Besides Novatech, the investment promotion program was attended by several South Korean companies exploring expansion opportunities in Vietnam, including brewer HiteJinro, technology and data center company Megazone, and building materials company Zenith.

According to Vietnam's Ministry of Industry and Trade, the companies expressed strong interest in Vietnam's investment environment and plan to continue exploring opportunities for future investment projects.

Thai Binh and Hung Yen provinces were merged last July to become the new Hung Yen, which borders Bac Ninh province, Ninh Binh province, Hanoi, Hai Phong city, and the East Sea.