South Korea’s Hyosung fined for environmental violations in southern Vietnam

Dong Nai has imposed a fine of VND300 million ($12,075) on Hyosung Vietnam Co. Ltd., wholly invested by South Korean chaebol Hyosung, for environmental violations committed in the southern province.

In a decision issued last week, Dong Nai authorities said the company had changed its technologies and machines, worsening environmental impacts beyond permissible levels per the license issued.

Furthermore, it had not applied for a new license covering the environmental impacts of the changed technologies and machinery.

Provincial authorities acknowledged that the company has collaborated with local agencies to address the violations by making additional investments to reduce emissions and dust emitted and taking steps to apply for a new license regarding the environmental impacts.

The fine has to be paid within 10 days of receiving the notification.

Hyosung Vietnam began its Dong Nai operations in 2007, producing various materials for the apparel-textile and automobile industries including spandex, nylon, tire cords and steel cords.

The South Korean company’s investment in Dong Nai province stands at over $2.2 billion, with four factories.

Other major investments of the company are in the southern coastal province of Ba Ria-Vung Tau and the central coastal province of Quang Nam.

Hyosung, which has invested $3.5 billion in various locations in Vietnam, planned to invest another $2 billion this year, its vice chairman Cho Hyun-sang had said at the Davos workshop in January during Prime Minister Pham Minh Chinh’s Switzerland visit.