Hyosung sees 100 years of development in Vietnam

By Phuong Anh   June 23, 2023 | 06:16 am PT
Hyosung sees 100 years of development in Vietnam
Hyosung chairman Cho Hyun Joo speaks at a meeting with Prime Minister Pham Minh Chinh on June 23 2023. Photo by VnExpress/Giang Huy
Hyosung, South Korea's leading power transformer producer, is expanding long-term operations in Vietnam because it sees 100 years of successful sustainable development in the future here, the company’s chairman said.

Speaking at a meeting with Prime Minister Pham Minh Chinh on Friday afternoon, chairman Cho Hyun Joo said Hyosung considered Vietnam "a strategic market."

Hyosung was a part of a 205-member business delegation that accompanied South Korea’s President Yoon Suk Yeol during a three-day state visit to Vietnam starting Thursday.

The corporation, which was founded in 1962, has invested $3.5 billion establishing its presence in Vietnam’s major manufacturing hubs such as Hanoi, Ho Chi Minh City, Dong Nai, Ba Ria - Vung Tau with more than 9,000 employees.

Last year, it recorded a net profit of about $20.1 million.

"With many promotional activities, we are not only expanding our business operations here, we also want Vietnam to become a sustainable investment destination for the corporation," said Joo.

Joo said his corporation wants to promote the development of large high-tech projects while expanding into the field of information technology.

Hyosung plans to recruit 10,000 more workers in Vietnam and hopes that the Vietnamese government will continue working to improve the country’s business environment, especially with the relaxation of administrative procedures.

"We look forward to setting up the company’s future for the next 100 years in Vietnam," he said.

Many other South Korean businesses are committed to expanding their operations in Vietnam as well.

South Korean TV manufacturer LG chairman Koo Kwang Mo said his corporation has also chosen Vietnam as a large-scale production base.

Since opening its investment in Vietnam in 1995, LG has poured capital into many fields. Late last year, the corporation revealed plans to invest an additional $5 billion into Vietnam.

Chey Tae-won, chairman of conglomerate SK Group, called Vietnam a high-potential market.

The group has been speeding up expansion plans in the country, aiming for a total Vietnam investment of $1.3 billion in renewable energy.

South Korean small and medium-sized enterprises also want to accelerate their investment in the country of over 100 million people.

A representative of the Federation of Korean Industry said Vietnam is a strategic partner and that Korea wants to promote cooperation in high-tech fields such as semiconductor manufacturing.

The Korean business community in Vietnam has urged the government to adjust taxes, regulations and policies to stabilize the business environment.

Over 9,000 South Korean companies operate in Vietnam, with total investment of up to $82 billion.

For his part, Prime Minister Chinh said he believed in the future progress of trade cooperation between the two countries.

"I hope South Korean businesses continue to make new breakthroughs and increase their business results here 3-4-fold in the coming years," he said, adding that he hoped South Korea would consider investing more in the cultural and entertainment industries.

Chinh said profit isn’t the only thing South Korean businesses should concern themselves with here as they also need to be responsible in Vietnam to create harmony between all parties involved in business deals.

The Prime Minister pledged Vietnam would thoughtfully consider the business proposals and concerns of South Korean businesses to come up with suitable solutions to any issues they may have here.

At an Economic Forum between the two countries on the same day, South Korean President Yoon Suk-yeol said that trade between the two countries would reach a total of $150 billion in value by 2030.

He hoped that the forum would help trade and cooperation between the two countries reach new heights.

"Vietnam is an important partner and South Korea will help Vietnam develop information technology and high technology," he said.

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