South Korea’s Daesang ramps up kimchi, meat production capacity in Vietnam

South Korean food company Daesang Corp. has expanded two production facilities in northern Vietnam to produce Korean food amid growing local demand.

The firm has invested KRW30 billion ($21.8 million) each to increase the annual output capacity of a dried laver plant in Hai Duong province and a meat processing plant in Hung Yen province, Korean media reported, citing a company statement.

The investments have been conducted by its two subsidiaries, Daesang Vietnam and Daesang Duc Viet.

With the investment, the Hai Duong plant, run by Daesang Vietnam, has increased its annual production capacity by 40%, expanding its dried seaweed product line and adding new facilities for manufacturing ambient convenience foods.

Daesang Duc Viet has more than doubled its annual production capacity at its Hung Yen plant. In addition to its existing meat products, Daesang Duc Viet will produce kimchi and high-demand convenience foods such as spring rolls and banh bao (steamed buns).

By locally producing the company’s flagship Jongga Kimchi in Vietnam, Daesang aims to increase its market share and target the convenience food market with its global brand O’food.

Daesang currently has six overseas K-food plants – two in Vietnam, one in Indonesia, two in China and one in the U.S., as well as four food ingredients plants – two in Vietnam, one in Indonesia and one in the Philippines.

Last year, Daesang earned more than KRW200 billion ($145 million) in sales of food products and condiments in Vietnam, nearly doubling its revenue back in 2017.

In the January-March period, Daesang’s net profit jumped 53% year-on-year to KRW20.67 billion ($15 million).