Hyosung Group, a South Korean industrial conglomerate, has announced plans to invest $720 million in a biotech fibre manufacturing plant in Vietnam.

The development came to light during a meeting between Nguyen Van Tho, Chairman of the People’s Committee of the southern province of Ba Ria-Vung Tau, and Hyosung representatives on December 4.

Kim Kyung Hwan, CEO of Hyosung Vietnam, revealed that the carbon Vietnam fibre plant situated in Phu My II Industrial Park (IP) is progressing significantly. This project underscores Hyosung’s commitment to pioneering advanced material production.

South Korean giants expand investment in high-tech sphere, Photo Le Toan

The proposed biotech fibre facility represents Hyosung’s first global foray into using eco-friendly technology for Spandex fabric production. This initiative aligns with the group’s broader strategy of diversifying its manufacturing portfolio and reinforcing its environmental commitments.

Earlier, Hyosung Vietnam had disclosed plans for an approximate $1 billion investment in a carbon fibre plant within the same IP, with an initial investment phase of about $160 million.

In another case, LG Innotek, a subsidiary of electronics giant LG, may become the first investor breaking ground at Trang Due 3 IP in the northern port city of Haiphong. At present, Kinh Bac City Group is eager to complete the legal procedures for Trang Due 3 IP to be ready to welcome investors in the first quarter of 2024. To date, 200 ha in the IP have been cleared.

Elsewhere, South Korean conglomerates such as Samsung and SK Group also consider Vietnam as their key manufacturing hub and have plans to expand their operations in the country.

During a meeting with National Assembly Chairman Vuong Dinh Hue at the National Innovation Centre in Hanoi in October, SK chairman Chey Tae-won said the firm was willing to cooperate with Vietnam in energy transition thanks to its wealth of green energy technologies.

The Korean Chamber of Commerce in Vietnam statistics show that 9,000 South Korean enterprises are investing in Vietnam, operating not only in traditional fields but also in emerging fields such as AI, IT, the environment, and green growth, with about $1.3 billion invested in renewable energy. South Korean enterprises have made important contributions in several fields such as high technology, the electronics industry, energy, cars, and construction.

However, Vietnam still needs to improve on problems relating to legal procedure so that disbursement can move forward smoothly. After the announcement that Hyosung would add $720 million to Ba Ria-Vung Tau, the investors showed goodwill via continuous meetings with the provincial leadership.

At meetings, the representative of Hyosung urged provincial leaders to support to deal with administrative procedures relating to the construction and environment licences, and especially on fire prevention licences.

Notably, at a meeting between the prime minister and foreign-invested enterprises in April, Kim Yong Seup, CEO of the Hyosung subsidiary in the southern province of Dong Nai, said the appraisal to get the fire prevention licence became more complicated from late 2022.

Accordingly, the Police Department of Fire Prevention, Fighting, and Rescue under the Ministry of Public Security will be responsible for the appraisal instead of the provincial agency. The schedule for this work is also uncertain, impacting the company’s expansion plan, Seup said.

“Implementing the project on time will help the company ensure the prestige with customers, and simultaneously contribute to improving the competition capacity in attracting investment capital for Vietnam,” Seup explained.

Last week, Deputy Prime Minister Tran Luu Quang asked ministries and localities to cooperate to prepare convenient conditions to welcome new investment capital inflows next year.