Hyosung Heavy Industries is significantly expanding its strategic footprint in Vietnam, securing pivotal agreements designed to capitalize on the nation’s escalating electricity demand and robust infrastructure investment. This move solidifies Hyosung’s commitment to Vietnam’s crucial power and industrial sectors.
A landmark memorandum of understanding (MOU) was recently signed between Hyosung Heavy Industries and Vietnam Electricity (EVN) during the prominent Korea-Vietnam Business Forum in Hanoi. This comprehensive partnership focuses on critical areas including advanced power asset management, enhancing grid stabilization, and strengthening technical capabilities across Vietnam’s power infrastructure.
This collaborative initiative with EVN encompasses several key pilot projects. These include the implementation of cutting-edge artificial intelligence (AI)-based power asset management systems for optimized efficiency, expanded deployment of Statcom technology to ensure robust power grid stability, and specialized training support for Dong Anh Electrical Equipment Corp., a vital subsidiary of Vietnam Electricity.
Under its ambitious Eighth National Power Development Plan, Vietnam targets a substantial increase in its total power capacity to 221 gigawatts by 2030. This monumental expansion requires an estimated investment of $136 billion in new generation and transmission infrastructure, creating immense opportunities for partners like Hyosung.
In a separate, equally significant development, Hyosung entered into another MOU with Vietnam’s Ministry of Finance, specifically with its Investment Promotion, Information and Support Center. This agreement paves the way for the establishment of Vietnam’s inaugural high-voltage motor manufacturing plant, a critical step for the country’s industrial self-sufficiency.
Hyosung Heavy Industries plans a substantial investment of $50 million to develop this state-of-the-art manufacturing facility in Dong Nai province. The plant is projected to achieve annual sales of $100 million and will be pioneering in its operations, carrying out the entire production process locally. This marks the first instance of such comprehensive local manufacturing by a foreign company within Vietnam.
Demand for high-voltage motors is surging across Vietnam, driven by the nation’s rapid industrial expansion and growing digital infrastructure. These essential components are widely utilized in critical applications such as power plants, diverse industrial facilities, advanced data center cooling systems, and the burgeoning renewable energy infrastructure.
Since its initial entry into the Vietnamese market in 2008, Hyosung has demonstrated a profound commitment, investing over $4 billion. This extensive investment positions the company as one of the largest Korean investors in Vietnam, with its local operations significantly contributing to the national economy, accounting for approximately 1 percent of Vietnam’s total exports.
“These strategic agreements represent a pivotal advancement in expanding our business scope in Vietnam, moving beyond our traditional textile operations into the vital heavy industries sector,” stated Cho Hyun-joon. “Our vision is to evolve as a dedicated, long-term partner deeply invested in Vietnam’s continuous development and economic prosperity.”
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