Hyosung Corp. announced on June 20 that visiting Vietnamese Deputy Prime Minister Vuong Dinh Hue has promised to provide full support for Hyosung’s investment projects in Vietnam during his meeting with its chairman Cho Hyun-joon.
Hyosung is building a US$1.2 billion polypropylene (PP) plant and a second tire cord plant in Vietnam.
Hyosung chairman Cho had an exclusive meeting with the Vietnamese deputy prime minister at Lotte Hotel in Seoul on June 19. Hue is known as the control tower of the Vietnamese economy in charge of supervising Vietnam’s Ministry of Finance, Ministry of Investment Planning and the central bank. At the meeting, Cho explained Hyosung's new projects, including the polypropylene (PP) plant in Ba Ria-Vung Tau Province and a second tire cord plant in Quang Nam Province, and requested the Vietnamese government’s support for them.
"Vietnam is a global complex production base for Hyosung that produces all of its core products," Cho was quoted as saying. "Hyosung looks forward to maintaining friendly relations and strengthening cooperation with Vietnam."
"Hyosung is one of the biggest investors in Vietnam. I promise to actively support the establishment of a PP plant in Ba Ria-Vung Tau Province and a tire cord factory in Quang Nam Province being pursued by Hyosung," Hue said.
The PP plant project is a large-scale project which started early last year. Hyo will invest a total of US$1.2 billion to build a PP production line, a dehydration plant (DH) process line and a liquefied propane gas (LPG) storage tank. Hyosung plans to complete a PP line with a production capacity of 300,000 tons by the end of this year and expand it afterwards.
The tire cord plant being built in Guangdong is the second factory after the first one near Ho Chi Minh City. Even though the investment amount is under wraps, the second plant, when completed as planned, will contribute greatly to increasing Hyosung’s share of Southeast Asian market.
Hyosung set up tire cord and spandex factories in Vietnam in 2007 by investing a total of US$1.7 billion. Hyosung Vietnam began to produce a surplus in 2009 with the growth of sales thanks to the factories. Its sales were a mere 6 billion won in 2008, but surpassed 1 trillion won in 2014.