In June, Korean food manufacturer Daesang invested 30 billion won (over $21.7 million) to expand its factory in Vietnam, aiming to double its annual production capacity. Daesang currently has four factories in Vietnam, specializing in the production of ready-made meals, ready-to-eat meals and sauces, maltose and tapioca starch, and fresh meat processing. Last year, the company generated 201.6 billion won in sales in Vietnam, double the figure five years ago.
In April, Paldo Corporation completed construction of its second plant near the southern province of Tay Ninh. This demonstrates its plan to establish a production belt stretching from the north to the south of the country. In the future, the company plans to further expand the facilities of its second plant to increase the production of instant noodles and use it as an export base to neighboring countries. In 2023, the revenue of its subsidiary Paldo Vietnam reached KRW 79.7 billion, up 17.4% year-on-year.
Ottogi has also chosen Vietnam as a place to promote its global business activities and expand its operations. Ottogi currently has two factories in Bac Ninh and Binh Duong provinces. Recently, Ottogi has launched the product “Oppa Ramen” specially for the Vietnamese market.
Among other well-known brands from the Republic of Korea in Vietnam, Orion stands out with sales reaching KRW 500 billion. In 2023, Orion Vietnam reported a total revenue of KRW 475.5 billion, up 62.8% compared to 2020. With its continued growth in Vietnam, the company is increasing its investments, including building more factories.
CJ CheilJedang is expanding its fresh produce business, focusing on frozen products, in Vietnam. It invested 30 billion won to establish an integrated production plant in the Mekong Delta province of Long An in 2022, and the company plans to invest 100 billion won in its additional facilities next year.
After announcing its “globalization of soju” initiative in 2016, Hite Jinro aims to generate 500 billion Korean won in sales from soju in overseas markets. The company has chosen Vietnam as its first overseas production base and has decided to establish a manufacturing plant in the Green i-Park industrial complex in the northern province of Thai Binh. Hite Jinro’s Vietnam plant is expected to be completed by 2026, with a target of producing 1 million products per year. The facility is expected to expand in the future and serve as a hub for the Southeast Asian market.
Insiders attribute the Korean food industry’s focus on the Vietnamese market to the Southeast Asian country’s young demographic structure, which holds great consumption potential.
Vietnam is considered a market where the Korean food sector has successfully penetrated and established strong recognition. Recently, the popularity of K-pop and K-culture has also boosted the popularity of K-food. To keep up with this trend, Korean companies are increasing their investments in Vietnam, including expanding their facilities.
Source: VNA
