S Korea’s Daewoo, CJ, GS E&C, Celltrion to scale up investments in Vietnam

Major corporations of South Korea, Daewoo, CJ, GS E&C, and Celltrion, will ramp up investments in Vietnam across various sectors, including food, logistics, infrastructure, construction, energy, and pharmaceuticals.

Executives from these firms made their commitments during meetings with Vietnamese Prime Minister Pham Minh Chinh in Seoul on Wednesday.

Daewoo E&C

Jung Won-ju, chairman of construction giant Daewoo E&C, said that the firm is keen to invest in energy projects, power plant development, industrial parks, and infrastructure in Vietnam.

He highlighted some potential projects, including the O Mon 3 and 4 gas-fired power plants in the southern province of Can Tho, the Hai Lang liquefied natural gas (LNG) power plant in the central province of Quang Tri, the Long An LNG power plant in the southern namesake province.

The firm also wants to develop a smart city model at its flagship Starlake new urban area project in Hanoi and build a new urban project in the northern province of Thai Binh, Jung said.

PM Chinh, in reply, suggested Daewoo start the Thai Binh urban project soon and proposed it join Vietnam’s ramshackle house eradication program, which is due to complete in 2025.

Daewoo E&C became the first South Korean construction company to open a representative office in Vietnam, in June 1991. It established Daewoo E&C Vina with a total capital of $1.3 billion, specializing in urban development.

GS Engineering & Construction Corp (GS E&C)

CEO of GS E&C Huh Yoon-hong proposed developing the Nha Be new urban area project, located in Ho Chi Minh City, into a smart city that includes a centralized information technology campus for semiconductor businesses and startups.

The Vietnamese leader asked GS E&C to work with the HCMC government to speed up the procedures and commence the project soon.

In Vietnam, GS E&C has joined many key projects, including the Metro No.1 Ben Thanh-Suoi Tien in HCMC, the Tan Son Nhat-Binh Loi-Outer Beltway road, Vam Cong bridge in the southern city of Can Tho, the Vinh Thi bridge connecting Hanoi to its neighboring province of Vinh Phuc.

Celltrion Inc.

Hyoung Ki Kim, vice chairman and CEO of Celltrion Inc., a leading biopharmaceutical company in South Korea, shared that the firm is finalizing procedures for to set up an import and distribution company for biopharmaceuticals in Vietnam, with its base to be located in Hanoi.

It will transfer technology to Vietnam Pharmaceutical Corporation (Vinapharm) and join hands with the latter to produce and distribute Celltrion products in Vietnam, he added.

CJ

Sohn Kyung Sik, chairman of multi-industry corporation CJ, made several recommendations regarding Vietnam’s standard system, livestock taxation, and administrative procedures.

CJ aims to continue investing in Vietnam in logistics, cultural industries, and the food sector with a focus on Vietnamese foodstuff export.

PM Chinh, for his part, suggested CJ expand in Vietnam, especially in livestock, food processing, logistics, culture, and biotechnology. He expected the firm to incorporate more Vietnamese products into its global supply chain.

Vietnam serves as the base for CJ’s regional headquarters. Entering Vietnam in 1998, the chaebol has invested $1 billion in Vietnam so far. It currently has 24 member companies in Vietnam, generating total revenue of $1.4 billion in 2023 and employing 11,200 workers.

KBD

On the same day, the Vietnamese PM received chairman and CEO of the government-owned Korea Development Bank (KDB) Kang Seog-hoon. PM Chinh asked KDB to continue assisting South Korean enterprises in operating in Vietnam and to offer credit and expertise to Vietnamese firms as well.