Hyosung to invest $6b in Vietnam for new businesses

[Viet]

February 11, 2018 - 15:02

Calling Vietnam a strategic base for its global expansion, Korean textile giant Hyosung said on Feb. 11 it will invest up to $6 billion in the Southeast Asian country.

Since 2007, the company has invested $1.5 billion to operate manufacturing units of spandex and tire codes in Dongnai, an industrial city near Ho Chi Minh. With the new investment plan, Hyosung plans to start a chemical and heavy industry business in the country in addition to its textile business in the country, the company’s Vietnam office said.

Cho Hyun Joon, chairman and CEO of Hyosung Corporation (left) and Vietnamese Prime Minister Nguyen Xuan Phuc converse at a meeting held in Hanoi on Feb. 8. Hyosung


The plan was unveiled during a meeting between Hyosung chief and Vietnamese Prime Minister Nguyen Xuan Phuc, on Feb. 8.

“Hyosung which exports to 70 countries around the world is the largest (Korean) investor doing various businesses in north, central and southern parts of Vietnam and Hyosung Vietnam is a base for the company’s global expansion,” Cho Hyun-joon, chairman and CEO of Hyosung Corporation was quoted as saying by officials who attended the meeting.

“Not only spandex and tire cords, we also plan to expand businesses in the chemical and heavy industry sector.”

Hyosung is considering establishing a new production line in Quang Nam Province, central Vietnam, said the company in a statement, without elaborating on what specific area of business it plans to invest.

Since last year, the company invested a total of $1.3 billion in Ba Ria-Vung Tau Province, southern Vietnam, to establish manufacturing units of polypropylene, a separate facility for dehydrogenation process to get high purity propylene as well as liquefied petroleum gas storage tanks.

The planned plant in Vietnam is expected to replace Hyosung’s existing polypropylene production line in Korea. The company plans to produce polypropylene pipes, high value-added products, at its plant in Ulsan, instead, to secure cost competitiveness.

According to local reports, the Vietnamese premier has suggested Hyosung chief to join as a strategic investor of the nation’s electricity transformer factory.

With Hyosung’s technology know-how in electricity projects, Cho said that the company will forge partnership with Vietnamese manufacturers of power transformers and transfer related technologies to help the country become an exporter of the product.

The chairman also suggested Hyosung’s capability in information technology in electronic payment, fintech and automated teller machines. Cho was meeting the Vietnamese leader for the second time since their first meeting in 2016.

Since mid-2000s, the chairman has been leading the company’s foray into Vietnam as a strategic location for producing Hyosung’s core products, the company added.

http://www.theinvestor.co.kr/view.php?ud=20180211000188

 

[Viet]

the koreans are too rich.

 

[UKBengali]

the koreans are too rich.

Samsung has revenue of more than 200 US billion dollars a year and profits of around 50 billion US dollars.
Samsung's yearly profits is nearly twice as much as the revenue BD government collects.

 

[Viet]

Samsung has revenue of more than 200 US billion dollars a year and profits of around 50 billion US dollars.
Samsung's yearly profits is nearly twice as much as the revenue BD government collects.

Korea is rich because Samsung, LG are rich. They become richer when setting up plants in Vietnam. Hyonsung wants to copy the success. We can’t blame them.

We are just screwdrivers.

 

[UKBengali]

Korea is rich because Samsung, LG are rich. They become richer when setting up plants in Vietnam. Hyonsung wants to copy the success. We can’t blame them.

We are just screwdrivers.

One day I am sure Vietnam will get there as well.

Remember you only really started from late 1980s with your reforms.

 

[Unknown-V]

the koreans are too rich.

Yes, they should pay for what they did to these poor women.

http://www.independent.co.uk/news/w...ean-soldiers-war-untold-stories-a7940846.html

 

[Viet]

One day I am sure Vietnam will get there as well.

Remember you only really started from late 1980s with your reforms.

It is not only the economic reform that began late. You can’t imagine but we have gone thru a deep valley of blood tears. Vietnam was completely destroyed thru 3 major wars. No country in the world has suffered such incredible sufferings.

Anyway all things are of the past, looking forward, we can agree with the Koreans to the division of labor: they develop, we manufacture. We can serve as global production base for Samsung, LG, Hyonsung and other major companies. Win win.

Next step will be encouraging the Koreans to set up production base for fighter jets, warships and missiles. They want Vietnam to produce 1,000 next generation battle tanks?

No problem at all. we will deliver on time.

 

[UKBengali]

It is not only the economic reform that began late. You can’t imagine but we have gone thru a deep valley of blood tears. Vietnam was completely destroyed thru 3 major wars. No country in the world has suffered such incredible sufferings.

Anyway all things are of the past, looking forward, we can agree with the Koreans to the division of labor: they develop, we manufacture. We can serve as global production base for Samsung, LG, Hyonsung and other major companies. Win win.

Next step will be encouraging the Koreans to set up production base for fighter jets, warships and missiles. They want Vietnam to produce 1,000 next generation battle tanks?

No problem at all. we will deliver on time.

Of course the wars as well put Vietnam back many decades.
Vietnam is on the right track now and has every chance of following Korea, Taiwan etc to prosperity over the next 2-3 decades.

 

[Viet]

Of course the wars as well put Vietnam back many decades.
Vietnam is on the right track now and has every chance of following Korea, Taiwan etc to prosperity over the next 2-3 decades.

it is just a matter of time we catch up with other, only ill-wisher and ignorant people hope, we will be stucked in primitive development because of low number of inventions of bla bla, or believe their country is the last one on earth who gets industrialized.

Something has changed. Usually the koreans use Vietnam for low wage industrial base, producing just some parts of the products. Now Hyonsung sets up a complete heavy industrial complex producing from A to Z. Vietnam has passed the stage of primitive productions. I expect many small korean components manufactures will set up plants near Hyonsung.

You should wish Vietnam will succeed. because many other countries will follow our path.

pics of Hyonsung Vietnam

 

[UKBengali]

it is just a matter of time we catch up with other, only ill-wisher and ignorant people hope, we will be stucked in primitive development because of low number of inventions of bla bla, or believe their country is the last one on earth who gets industrialized.

Something has changed. Usually the koreans use Vietnam for low wage industrial base, producing just some parts of the products. Now Hyonsung sets up a complete heavy industrial complex producing from A to Z. Vietnam has passed the stage of primitive productions. I expect many small korean components manufactures will set up plants near Hyonsung.

You should wish Vietnam will succeed. because many other countries will follow our path.

pics of Hyonsung Vietnam

Vietnam is growing GDP at around 7% a year, same as BD.

Is Vietnam also encouraging domestic industry like BD is, as only a a strong indigenous industrial base can deliver real prosperity? You do not want to end up like Thailand that has lots of foreigners making all the goods and taking the profits out of the country.

 

[Viet]

Vietnam is growing GDP at around 7% a year, same as BD.

Is Vietnam also encouraging domestic industry like BD is, as only a a strong indigenous industrial base can deliver real prosperity? You do not want to end up like Thailand that has lots of foreigners making all the goods and taking the profits out of the country.

It’s not easy to establish an industry if you are late to the party, lack of money, lack of expertise, lack of everything. Let’s take automobile industry. Until now majority of Vietnamese ride on bikes. Car industry is weak. But unlike some illwisher hope for, we are currently building a car industry from zero. Vietnam car sales in January increased by 28 percent, not dropped as a certain Chinese poster created a thread to troll VN. Yes the imports crashed, badly hurting foreign car makers, but the domestic car makers increased car sales.

Thaco car plant

 

[UKBengali]

It’s not easy to establish an industry if you are late to the party, lack of money, lack of expertise, lack of everything. Let’s take automobile industry. Until now majority of Vietnamese ride on bikes. Car industry is weak. But unlike some illwisher hope for, we are currently building a car industry from zero. Vietnam car sales in January increased by 28 percent, not dropped as a certain Chinese poster created a thread to troll VN. Yes the imports crashed, badly hurting foreign car makers, but the domestic car makers increased car sales.

View attachment 453666

Maybe a little easier for BD to develop local industry as it started earlier(early 70s) and has a larger domestic market(160 million).
BD companies supply nearly all drugs and white goods like fridges and TVs for domestic market. BD conglomerate Walton is now the first in S Asia to design and manufacture smartphones.
Good that you are getting lots of foreign investments but remember to give space for domestic industry to flourish.

 

[Viet]

Maybe a little easier for BD to develop local industry as it started earlier(early 70s) and has a larger domestic market(160 million).
BD companies supply nearly all drugs and white goods like fridges and TVs for domestic market. BD conglomerate Walton is now the first in S Asia to design and manufacture smartphones.
Good that you are getting lots of foreign investments but remember to give space for domestic industry to flourish.

No offense but you still have a long way to go. Bangladesh major export item is garment with 85 percent, while Vietnam major export item is electronics, garment export is just 14 percent. True VN extracts lots of FDI, but it is still too little to create jobs and income for everybody.

I think VN and BD can operate on food security. Or other fields where we both don’t stand against each other as competitors such as garments.

Actually it’s just a matter of time until we get developed similar to the level of Japan and Korea. Unless a major war breaks out. My biggest concern is only how we can reduce corruption level. Or bad behavior. Lots of Vietnamese throw rubbish on the streets as if there is always somebody that cleans up.

 

[UKBengali]

No offense but you still have a long way to go. Bangladesh major export item is garment with 85 percent, while Vietnam major export item is electronics, garment export is just 14 percent. True VN extracts lots of FDI, but it is still too little to create jobs and income for everybody.

I think VN and BD can operate on food security. Or other fields where we both don’t stand against each other as competitors such as garments.

Actually it’s just a matter of time until we get developed similar to the level of Japan and Korea. Unless a major war breaks out. My biggest concern is only how we can reduce corruption level. Or bad behavior. Lots of Vietnamese throw rubbish on the streets as if there is always somebody that cleans up.

Of course BD is far from where it needs to be.
Export is a small fraction of the revenue of BD manufacturing in areas like pharma(2 US billion domestic revenue versus 100 US million exports) and electronics. Like I say BD has a large internal market of 160 million people and so does not need to go for export growth as much as Taiwan and Korea had to do. BD companies seem to be more focused on consolidating the home market before trying to start exports in a big way. We shall see over the next 5-10 years how successful they will be.

 

[Viet]

Of course BD is far from where it needs to be.
Export is a small fraction of the revenue of BD manufacturing in areas like pharma(2 US billion domestic revenue versus 100 US million exports) and electronics. Like I say BD has a large internal market of 160 million people and so does not need to go for export growth as much as Taiwan and Korea had to do. BD companies seem to be more focused on consolidating the home market before trying to start exports in a big way. We shall see over the next 5-10 years how successful they will be.

If you look at major economies, be Japan, Korea, China or Germany, most of them are export oriented. Their home markets are usually too small for their domestic manufacturing complexes. They accumulate money and wealth over trade surpluses so no reason why we don’t follow their footsteps. Many countries are trapped in the middle income, can never reach high income because their export industry is weak.

In Vietnam we produce everything too much in quantity, be agraproducts such as rice, schrimp, coffee or sophisticated stuffs as computers, smart phones, washing machines. We can even produce more but Vietnamese consumers cannot buy all. Impossible. export is the only solution. After a slow start we are approaching $300 billion in export volumes this year or next.

There are few exceptions with countries not relying on exports. But most of them are small nations, not big in size and population. Having said that I wish you all the best though, every country has own way to success.