South Korean industrial giant wants to set up data center in HCMC

By Phuong Dung   May 10, 2024 | 11:35 pm PT
South Korean industrial giant wants to set up data center in HCMC
Workers seen at a factory of Hyosung Vietnam. Photo courtesy of the company
South Korean company Hyosung Corporation is seeking approval to build a data center in a high-tech zone in HCMC.

The company’s vice president and CEO Lee Sang Woon personally sought the greenlight from Deputy Prime Minister Le Minh Khai at a meeting Friday.

Vietnam has 32 medium and small commercial data centers, with major local providers Viettel, VNPT, FPT, and CMC having a 97% market share.

The market is small compared to that of other countries in the region such as Singapore, Indonesia, Malaysia, Thailand, and the Philippines.

Vietnam is now considered one of the top 10 emerging data center markets in the world, and, according to Research and Markets, could grow to be worth US$1 billion by 2028.

Hyosung ranks third in the world in ATM manufacturing. The company also wants to invest in a factory in Vietnam to produce these machines.

Khai said the government always prioritizes improving the investment environment and enabling corporations to invest and operate "effectively and sustainably."

He suggested Hyosung should focus on environmental protection, link up with domestic businesses and use locally produced materials to secure workers’ livelihoods.

South Korean companies have nearly 10,000 projects in Vietnam with a total investment of $87 billion, the highest of any country.

Hyosung is the third largest Korean investor in Vietnam behind Samsung and LG.

Since 2007 it has invested more than $4 billion in key sectors such as materials, textiles, chemicals, and electrical systems. It has moved nearly all of its factories in South Korea to Vietnam.

Hyosung recently invested in a carbon fiber plant that produces an environment-friendly bio-based chemical which can be made into plastic and elastic fibers.

The $730-million plant is in the southern province of Ba Ria – Vung Tau.

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