Leading RoK corporations keen to expand operations in Vietnam

Sohn Kyung-shik, chairman of CJ Group operating in various industries such as food and food services, logistics, pharmaceutics and biotechnology, entertainment and media, said has poured investments in 25 countries globally, with its revenue last year hitting US$31 billion. The multinational corporation has been operating in Vietnam since 1998, and it now has 24 affiliates with last year’s revenue at US$1.4 billion.

He proposed that the Government consider applying a number of regulations related to commodity standards, and take measures to protect domestic livestock enterprises. He also said CJ wishes to continue investing in Vietnam’s food services, especially the export of food products, logistics, and cultural industries, among others.

Chinh for his part welcomed Sohn’s proposals and at the same time asked the group to increase the exchange of experiences and expertise, provide training to help farmers develop livestock production, and develop a system of quality standards for livestock products.

He affirmed that the Government of Vietnam will accompany and support CJ to invest, build and develop projects in Vietnam effectively, so as to help Vietnam achieve its goals of green growth and sustainable development.

At another meeting, Chang In-hwa, CEO of the RoK’s largest steelmaker POSCO, said POSCO is one of the top five businesses operating in the fields of steel, energy, trade, and electric vehicle (EV) battery materials, with its revenue reaching US$59 billion last year. In Vietnam, POSCO has established four steel plants with a total investment of US$1.8 billion.

POSCO wishes to continue expanding cooperation and investment in Vietnam in a number of new fields, and to convert the specialized port that POSCO is using in Vietnam into a commercial port, Chang said, adding the corporation also wants to invest in an LNG gas power plant in the country.

Chinh highly appreciated POSCO’s business and investment activities in Vietnam, and said the country is encouraging foreign investments in emerging industries such as semiconductor, artificial intelligence, big data, and biotechnology. He also welcomed POSCO’s investment expansion plans and expected that the group would bring in advanced, environmentally friendly technology commensurate with Vietnam’s development plans and orientations, especially in priority areas.

Meeting with the Vietnamese PM, Kang Seog-hoon, chairman and CEO at the Korea Development Bank (KDB), said KDB that has established affiliates in 25 countries around the world has cooperated and provided capital for many large Korean firms to invest in Vietnam. It has coordinated closely with the Ministry of Finance of Vietnam to formulate a sustainable development strategy for the Vietnam Development Bank (VDB).

KDB plans to promote investment in Vietnam’s strategic fields such as high-tech, innovation, infrastructure, and green growth, he told Chinh.

The PM valued KDB’s effective operations in Vietnam and hoped that the bank would continue to support Korean businesses to invest in the country. He encouraged KDB to come up with credit financing plans for Vietnamese businesses, especially small and medium-sized enterprises, in the fields of green finance, infrastructure, and high technology.

At another meeting with the Vietnamese PM, Cheoldong Jeong, president/CEO at LG Display, an arm of LG, said LG is a multinational corporation that operates in the fields of electronics, communications, services, and chemicals, with revenue reaching US$137 billion last year. LG has poured more than US$5 billion into Vietnam, including a LG Display factory in northern Hai Phong city, and plans to inject an additional US$4 billion into the country.

Cheoldong expressed the corporation’s desire to continue its investment in Vietnam’s both traditional and new industries.

Chinh thanked the corporation for its projects in Vietnam, helping to develop supporting industries, generate jobs, and spur socio-economic development. He expected that the group would continue to consider Vietnam as an important base in its global strategy of production, research and development of key products for the international market.

The PM requested LG Display to increase the localization rate of LG products in Vietnam, support Vietnamese businesses to engage in the group’s supply chain and production chain, and build a research and development centre in Vietnam, while actively take part in social security activities.

Also on July 3 morning, PM Pham Minh Chinh met Jung Won-ju, CEO of Daewoo Engineering and Construction, Huh Yoon-hong, CEO of GS Engineering and Construction, and Kim ki-Hyoung, Co-vice chairman/Co-CEO at Celltrion Inc. leaders of these Korean corporations all expressed their desires to expand their investment plans in Vietnam.