Hyosung Corp. chairman Cho Hyun-joon, in a meeting last week with Vietnamese Prime Minister Nguyen Xuan Phuc in Hanoi, committed to utilizing Vietnam as a global production base for producing all the company’s core products, such as textiles, industrial materials, chemicals and heavy industry.
“Hyosung, exporting to more than 60 countries around the world, is the largest investor carrying out various businesses in the northern, central and southern regions of Vietnam, and Hyosung Vietnam will become our outpost for advancing further into the global market,” Cho said at the meeting. “We are planning to expand our business not only in spandex and tire cords, our leading global products, but also in chemicals and heavy industry.”
Since Hyosung established Hyosung Vietnam in the Nhon Trach industrial complex near Ho Chi Minh City in 2007, the company has invested about $1.5 billion, making it the largest investor among the South Korean companies in the industrial complex. It is producing its core products, such as Creora spandex, tire cords, steel cords and motors on the 1.2 million-square-meter site, with more than 7,000 local employees.
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Hyosung Vietnam implemented an integrated production system for spandex and tire cords, and maximized production efficiency, and it is now operating as a forward base for advancing into the global market through continuous expansion. The company said since 2008, a year after its establishment, Hyosung Vietnam has been profitable for 10 consecutive years.
At the meeting, Cho said Hyosung wants to quickly invest in chemicals and heavy industry, such as polypropylene and motors, and presented a specific blueprint. Hyosung invested $1.3 billion in Ba Ria Vung Tau in the southern part of Vietnam last year, and is carrying out the investment procedure for construction of the polypropylene plant, DeHydrogenation facilities for this plant and a liquefied petroleum gas storage tank.
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Cho also discussed infrastructure projects in Vietnam with Phuc, noting that Vietnam urgently needs improvement in power, roads, ports and urban development. He said Hyosung could assist in this by utilizing its technology and know-how in power transmission and construction. In particular, he said Hyosung would help Vietnam quickly become an exporter of extra-high-voltage transformers, rather than an importing country, through technology transfer.
Cho also emphasized the importance of manufacturing innovation, such as combining existing manufacturing processes with IT technology.
Last week, Hyosung reported 2017 revenue increased 4.9% to $11.76 billion, with net income gaining 40 percent to $319 million. The textile unit posted a revenue gain of 8 percent to $2 billion, as profits rose 19.7% to $234 million. The company said the Creora spandex segment had seen improved performance in the first quarter thanks to an increase in selling price and higher demand, while the nylon and polyester fiber segment has seen a slight decrease in profit due to increases in raw material costs.