South Korean companies entering Vietnam early continue to consider it a key market for their overseas business operations. — Vietnam News
SEOUL: South Korea’s food industry is targeting Vietnam as a premier market for food products as companies entering the South-East Asian country early continue to consider it a key market for their overseas business operations, say industry insiders.
In June, South Korean food maker Daesang spent 30 billion won on expanding its plant in Vietnam, aiming to double its annual production capacity.
Daesang has four factories in Vietnam, specialising in producing convenience foods, ready-to-eat foods and sauces, maltose and tapioca starch, and processing fresh meat.
Last year, the firm earned 201.6 billion won in revenue in Vietnam, a two-fold rise from the figure five years ago.
In April, Paldo Corp completed the construction of its second factory near the southern province of Tay Ninh. The expansion reinforces its plan to establish a production belt spanning the country’s north and south.
The company also plans to expand the facilities of its second factory to increase the production of instant noodles and use it as a base for exports to neighbouring countries.
In 2023, revenue of its subsidiary Paldo Vietnam reached 79.7 billion won, up 17.4% year-on-year.
Vietnam is also chosen by Ottogi as an location to promote its global operations and expand its business. Currently, Ottogi owns two factories in Bac Ninh and Binh Duong provinces. Recently, Ottogi introduced the Oppa Ramen product specifically for the Vietnamese market.
Among other well-known South Korean brands in Vietnam, Orion stands out with sales reaching 500 billion won. In 2023, Orion Vietnam reported total revenue of 475.5 billion won, surging by 62.8% compared with 2020.
Thanks to its continuous growth in Vietnam, the company is expanding its investment, including constructing more factories.
CJ CheilJedang is developing its fresh food business, focusing on frozen food, in Vietnam. It invested 30 billion won to establish an integrated production facility in the Mekong Delta province of Long An in 2022, and the firm plans to invest 100 billion won in additional facilities next year.
After declaring its “globalisation of soju” initiative in 2016, Hite Jinro aims to achieve 500 billion won in revenue from soju sales in foreign markets.
The company has chosen Vietnam as its first overseas production base and decided to establish a manufacturing plant in the Green i-Park Industrial Complex in the northern province of Thai Bình.
Hite Jinro’s factory in Vietnam is scheduled to be completed by 2026, targeting one million bottles per year. The facility is expected to be expanded in the future and serve as a hub for the South-East Asian market. — Viet Nam News/ANN
