Vietnam’s Economic Transformation: The Hyosung Story

Chairman Hyun-joon Cho played a pivotal role in designating Vietnam as Hyosung’s second global advance base. Since the mid-2000s, he recognized the need for a bridgehead to address rising cost burdens and began paying attention to Vietnam’s growth potential. He formulated a strategy to maximize Vietnam as a production base for key items and gradually implemented this plan. Consequently, a Hyosung subsidiary was established near Ho Chi Minh City in the Nhơn Trạch Industrial Zone in Dong Nai Province in 2007, followed by another subsidiary in Dong Nai in 2015. In Vietnam, Hyosung currently manufactures spandex, tire cords, steel cords, technical yarns, and power transformers.

Chairman Cho actively pursued mutually beneficial growth with Vietnam. In 2007, when Hyosung initially invested in Vietnam, the Nhơn Trạch District was predominantly underdeveloped, with most residents reliant on farming for their livelihoods. Hyosung transformed the landscape by establishing a factory in the area and providing jobs to many locals. After the establishment of Hyosung’s production base, the region flourished into an economic center with thriving shops and markets. The Vietnamese government responded by improving infrastructure in the industrial zone, constructing roads and power facilities.

Furthermore, Chairman Cho consistently emphasized the importance of maintaining friendly relations and enhancing business cooperation with Vietnam. He engaged in discussions with Nguyen Xuan Phuc, the Prime Minister of Vietnam at that time, in 2016 and 2018, focusing on plans for further collaboration, which included venturing into the local infrastructure construction market and initiating new investment projects. In June 2019, he extended his global field management efforts by meeting with Vuong Dinh Hue, the Deputy Prime Minister for Economic Affairs of Vietnam at that time.

More recently, in commemoration of the 30th anniversary of diplomatic relations between South Korea and Vietnam, Chairman Cho met with President Nguyen Xuan Phuc to explore opportunities for expanding business. Chairman Cho expressed, “Vietnam represents a critical global integrated base for all of Hyosung’s core products.” He added, “I hope that Hyosung can sustain a friendly relationship with Vietnam to further strengthen our business cooperation.”