HYOSUNG CHEMICAL

2022 marked the 30th anniversary of diplomatic relations between Korea and Vietnam. Over this significant period, the official names used to address each other changed from "South Chosun" and "North Vietnam" to "Republic of Korea" and "Vietnam," reflecting the progress made in bilateral relations. Since the establishment of diplomatic ties in 1992, the trade between the two countries has increased by 175 times. South Korea has become Vietnam's largest investor, and the number of Koreans living in Vietnam has reached 170,000, while there are 230,000 Vietnamese nationals residing in Korea, indicating the close relationship between the two countries.

On the 30th anniversary of diplomatic relations, the two countries upgraded each other to a "comprehensive strategic partnership." In 2023, 205 economic envoys visited Vietnam with the president to hold a "Korea-Vietnam Business Forum."

The population of Vietnam is approximately 100 million, with an average age of only 32 years. It is regarded as a country with high growth potential in the future. With low labor costs, it is gaining attention as a country that can play a role as the 'world's factory,' following China. As a result, South Korea has become the top foreign direct investor (FDI) in Vietnam.

Many countries, companies, and businesspeople are paying attention to Vietnam as the 'POST CHINA' and making efforts to invest. However, the partnership between Hyosung and Vietnam began much earlier, under Hyosung's global investment leadership.

Anticipating the Post China, Vietnam

Over the years, Hyosung has been at the forefront of relentless global investments. In the 1990s, anticipating the growth of China, we proposed the establishment of a local production and sales system in China. As a result, Hyosung's first overseas branch and the leading player in the textile industry, Hyosung Spandex, established its iconic factory in Jilin City, China.

When everyone recognized China's potential and ventured into it, Hyosung sought a new stage. The place that caught their attention was Vietnam. Many expressed concerns about Hyosung's swift movements, but their determination could not be deterred. After investing significant time and effort in understanding the local situation in Vietnam, reviewing factory sites, and assessing the local conditions and market, Hyosung ultimately concluded that Vietnam has sufficient potential to become the next POST CHINA destination.

Unprecedented Success Hyosung in Vietnam

Dong Nai Province Industrial Complex, located one hour away by car from Ho Chi Minh City, was once predominantly covered with rubber tree plantations as recently as 2007. The area was practically barren, with the most residents making a living through farming.

Following its first subsidiary in Vietnam, Hyosung established Dong Nai Corporation in 2015, expanding and sustaining its investment in Vietnam. This demonstrates Hyosung's resolute investment approach, which anticipates global investment trends and the future. Dong Nai Industrial Complex has transformed into the largest industrial zone in Vietnam, with over 5,000 employees. In 2012, Hyosung was recognized as an "Excellent Job Creation Company" by Dong Nai Province and received an appreciation plaque.

The establishment and investment of Hyosung Corporation in Vietnam have been steadily expanding since 2007.

As such, Hyosung Group's state-of-the-art production facilities have been fully integrated across Vietnam.

As of 2022, Hyosung's cumulative investment in Vietnam amounts to 3.9 billion dollars, making it the third-largest domestic group to enter Vietnam. It has recorded sales of 3.2 billion dollars and is expected to surpass 4 trillion won in sales this year.

Hyosung's sales account for 1% of Vietnam's total exports, creating a partnership that grows together.

The Power of Local Vietnam in Achieving First Place

"Vietnam" and "World's Number One" have become inseparable words. The Vietnamese and Dongnai corporations boast the highest production capacity as a single factory among Hyosung's global production bases, and all Hyosung products, which remain the No. 1 in the world market, are produced in Vietnam.

Spandex, developed with Hyosung's proprietary technology, has become the global market leader just 10 years after its launch. Starting as a latecomer, Hyosung has achieved the top position globally as a tire essential reinforcement material, supplying uniform products that match the world's top brands domestically and in overseas factories. This reputation extends to tire cords and yarns for automotive safety belts and airbags.

Hyosung's Social Contribution Impressed the Vietnamese Community

Good companies are more than just evaluated based on job creation or revenue alone. Hyosung Chairman Hyun-Joon Cho has long emphasized that “Vietnam is home to Hyosung's largest global production corporation, and Hyosung can also be said to be a member of the Vietnamese community."

According to Hyosung's management policy, which emphasizes corporate social responsibility, Hyosung continues to positively influence on the local community in Vietnam even now.

Hyosung's overseas medical volunteer group, "Miso Expedition," has provided free medical services in Ho Chi Minh City and Dong Nai Province since 2011. Up to now, 15,000 local residents have benefited from their services. We have also continued our efforts by donating to COVID-19 response, providing education and support for unmarried mothers and marginalized groups, and sponsoring underprivileged children in low-income areas.

In 2018, during a donation ceremony for Hyosung Vietnam's COVID-19 response fund, the Chairman of the Central Committee of the Vietnam Fatherland Front at that time, Do Van Chien, expressed his gratitude to Hyosung Vietnam for their contribution of 10 billion dong (440,000 dollars). He stated, "Hyosung Vietnam has been supporting vulnerable groups through various social contribution projects nationwide" and also thanked Hyosung for their participation in the government's COVID-19 response efforts.

Companion, More Than a Business Partner- Vietnam

It has been 16 years since Hyosung entered Vietnam. During this time, Hyosung and Vietnam have cooperated and grown together, becoming important and special partners beyond mere cooperation. Vietnam has become a global outpost for Hyosung's second leap, while Hyosung has contributed to the country's economic and community development in Vietnam.

Young talents who have graduated from the top universities in Vietnam perceive Hyosung as a desirable global company to work for. Moreover, Hyosung has established itself as a trusted brand representing Korea and leading the future lifestyle, especially among Vietnamese citizens who love the Korean wave.

All future Hyosung factories in Vietnam will be equipped with smart factory systems. This will be a catalyze manufacturing innovation by integrating IT technologies such as big data into core manufacturing processes. Additionally, it will lead to the establishment of a global standard manufacturing environment that addresses carbon neutrality and the climate crisis.