Strengthening Business in Vietnam
Hanwha Group chairman Kim Seung-youn will visit Vietnam for the first time in seven years since his tour to Southeast Asian countries, including Ho Chi Minh, in 2011.
According to Hanwha Group on Nov. 20, Kim will leave for Hanoi, Vietnam, to attend a ceremony on Dec. 5 to mark the completion of a plant built by Hanwha Aerospace Co., an aviation and defense unit of Hanwha Group.
Hanwha Aerospace, a manufacturer of fighter plane and helicopter engines, is the only company that can produce gas turbine engines in South Korea. The company started construction of its aircraft engine parts production plant in Hoa Lac Hi-tech Park (HHTP) near Hanoi, Vietnam, in July last year and is about to begin operation in earnest. It is planning to increase its engine component production capacity and win orders through its Vietnamese plant.
In addition, Kim is expected to put efforts into establishing a partnership with Vingroup, which is dubbed “Samsung of Vietnam,” during his trip. Previously, Hanwha Asset Management Co. purchased 84 million preferred shares for 450 billion won (US$398.76 million) that can be converted into common shares in Vingroup in August based on a fund to pool investment from the group’s affiliates, including Hanwha Life Insurance Co. Vingroup is ranked first in terms of market capitalization in Vietnam.
Kim is also requesting a meeting with Vietnamese Prime Minister Nguyen Xuan Phuc. He is forecast to seek for ways to strengthen cooperation mainly in sectors that Hanwha has competitiveness, such as solar power generation, plant construction, banking, petrochemical and defense, at the meeting.