S.Korea’s industrial conglomerates to expand investment activities in Vietnam

South Korean industrial conglomerates such as Hyundai Motor Group and Doosan Enerbility have all expressed their commitment to further expand their investment activities in Vietnam.

Prime Minister Pham Minh Chinh and CEO of Hyundai Motor Group Euisun Chung. Photos: Nhat Bac

The view was shared at meetings of the Group’s executives with Prime Minister Pham Minh Chinh on July 1, who is currently on a visit to South Korea.

During the meeting, the CEO of Hyundai Motor Group Euisun Chung expressed his desire to expand business activities in Vietnam, transfer new technologies, and invest in advanced techniques, especially in the context of the growing global and Vietnamese electric vehicle markets.

Chun praised Vietnam's high-quality young workforce and plans to introduce training programs to nurture talent in the automotive industry.

For his part, Chinh appreciated Hyundai Motor Group's investment and business activities in Vietnam. He welcomed and encouraged the Group to expand investments in green transportation, enhance technology transfer, increase localization rates, support Vietnamese enterprises in joining the supply chain, train the workforce, and pursue sustainable development in Vietnam. The Prime Minister also suggested that Hyundai participate in social welfare activities.

Notably, he hinted that Hyundai should sponsor and invest in Vietnamese football, a suggestion to which the group's management responded positively, committing to giving it serious consideration.

Established in 2000, the Hyundai Motor Group comprises 29 companies, including Hyundai Motor Company, founded in 1967, and is primarily focused on the automotive sector. Major foreign markets include the US, Europe, and Asia, with 486 offices in 42 countries, employing over 313,000 people, and generating approximately $103.3 billion in revenue in 2022.

In Vietnam, the  Hyundai Motor Group has invested $415 million in the Hyundai brand, employs 2,300 people, and has annual sales of $2.6 billion. Through the KIA brand, Hyundai has partnered with THACO in Vietnam to produce and assemble various KIA vehicles and components at THACO's wholly-owned plant in Quang Nam province for domestic demand and export.

The Prime Minister and Vice Chairman and CEO of Doosan Enerbility Yeonin Jung.

The  Prime Minister then met with Yeonin Jung, Vice Chairman and CEO of Doosan Enerbility. Specializing in heavy industry, Doosan Enerbility employs 13,500 people with 2023 revenues exceeding $12.7 billion. Doosan Vina, established in Vietnam in 2006 with an investment of $300 million, produces heavy industrial products for 398 projects in 35 countries and territories worldwide, with total orders exceeding $3 billion.

During the meeting, Doosan's leadership highlighted the company's experience, capabilities, and achievements, and discussed plans to expand investment, transfer management experience, and technology to Vietnamese enterprises, strengthen the localization of electrical equipment at Doosan Vina in Quang Ngai, and develop offshore wind power and carbon reduction technologies for power plants. They also expressed their desire to sign MOUs with Vietnamese enterprises in clean energy and emission reduction.

Prime Minister Chinh praised Doosan Enerbility's effective contributions to the manufacturing of industrial and energy equipment in Vietnam. He supported and welcomed the Group's new green energy solutions and technologies, as well as its support for Vietnam's sustainable development goals, research and development of green energy sources, carbon reduction, and offshore wind power development. The Prime Minister encouraged the transfer of management skills, techniques, and technologies to Vietnamese enterprises on the principle of balanced benefits and shared risks.

For any issues, the Prime Minister suggested that Doosan continue to coordinate with Vietnamese authorities and partners to resolve them. If beyond their authority, they should report to the relevant higher authorities for consideration and decision.

Strengthening SMEs’ connection

The Prime Minister in a meeting with KBIZ Chairman Kim Ki Moon.

Later in the day, the Prime Minister met with Kim Ki Moon, Chairman of the Korea Federation of SMEs (KBIZ), and Kim Sung-tae, Chairman and CEO of the Industrial Bank of Korea (IBK). Established in 1962, KBIZ is one of Korea's four largest business associations with over 3.5 million members. KBIZ currently only has representative offices in Vietnam and the US. IBK, founded and majority-owned by the South Korean government, specializes in providing financial services to SMEs in Korea and has a branch in Vietnam.

During the meeting, the KBIZ Chairman discussed plans to enhance cooperation between SMEs in both countries, the roles of KBIZ and IBK in transferring methods and experiences to SMEs, and contributing to the economic growth of both countries based on SME foundations. The KBIZ Chairman also reported on plans to organize an investment promotion forum in Vietnam later this year, with the participation of hundreds of SMEs.

Prime Minister # Chinh thanked and urged KBIZ to continue promoting investment and business cooperation, enhancing the promotion of Vietnam's investment environment and policies to South Korean businesses, working with the Vietnam Association of Small and Medium Enterprises to connect and support SMEs in both countries and coordinating with the Ministry of Planning and Investment to organize the investment forum at an appropriate time. The Prime Minister also welcomed IBK to continue providing credit support to Vietnamese SMEs.