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S.Korean conglomerates keen on investment expansion in Vietnam

The Saigon Times

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HCMC – Leaders of six major South Korean corporations met with Vietnam’s Prime Minister Pham Minh Chinh this morning, July 3, expressing their interest in expanding investments in Vietnam, according to local media reports.

The six corporations are CJ, Posco, LG, Daewoo E&C, GS Engineering & Construction Corp, and Celltrion.

At the meeting, Sohn Kyung Sik, chairman of CJ Group, said his corporation has invested around US$1 billion in Vietnam, and that Vietnam serves as the regional headquarters of the group in Southeast Asia.

He said his company plans to further invest in Vietnam’s food sector, logistics, and cultural industries, and to boost exports of processed foods to regional markets, the U.S., and Europe.

PM Chinh praised CJ for its investments across four sectors in Vietnam and encouraged CJ to consider investing in sustainable livestock farming.

Chang In Hwa, CEO of Posco Group, showed interest in clean and gas-fired energy, and rare earth mining and processing in Vietnam, and proposed converting Posco’s specialized port in Ba Ria-Vung Tau into a commercial port. Posco, specializing in steel, energy, trade, and electric vehicle battery materials, has invested US$1.8 billion in Vietnam.

Cheoldong Jeong, CEO of LG Display, affirmed that Vietnam is LG’s global manufacturing hub. LG has registered total investment capital of US$8.02 billion in Vietnam, with total revenue reaching an estimated US$13.97 billion in 2023.

LG plans to expand its investment to double the capacity of the LG Innotek factory in Haiphong City and establish an integrated production complex in Vietnam. PM Chinh and ministry leaders addressed LG’s concerns about the global minimum tax and electricity supply stability, committing to providing stable electricity, quality manpower, and incentives for LG’s projects.

Jung Won Ju, chairman of Daewoo E&C, expressed interest in investing in major urban projects in Vietnam, particularly in the northern province of Thai Binh. Daewoo E&C aims to get involved in projects across various sectors, including energy, power plants, industrial zones, and infrastructure, such as the O Mon 3 and 4 thermal power plants, Hai Lang LNG, and Long An LNG.

Huh Yoon Hong, president and CEO of GS Engineering & Construction Corp (GS E&C), requested Vietnam’s support for building the Nha Be Smart City, focusing on a concentrated IT area for semiconductor design industries and high-tech startups.

Hyoung Ki Kim, vice chairman and CEO of Celltrion Inc, a leading South Korean pharmaceutical company, assessed that the Vietnamese market has great potential for growth. The group is completing investment procedures to establish a company for importing and distributing biopharmaceuticals in Vietnam.

Additionally, PM Chinh met with Kang Seoghoon, president and CEO of Korea Development Bank (KDB). The leader appreciated KDB’s contributions to the development of the financial and banking sector in Vietnam and expressed hope that KDB would continue to provide funding for Vietnamese businesses.

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