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Hyosung to build $1.2bn plant in Ba Ria Vung Tau

Released at: 15:19, 09/02/2017

Hyosung to build $1.2bn plant in Ba Ria Vung Tau

Ba Ria-Vung Tau/CMIT/Illustration

South Korean conglomerate agrees to terms with local authorities.

by Hong Nhung

South Korea’s Hyosung Corporation has recently signed a memorandum of understanding (MoU) with the Ba Ria Vung Tau Provincial People’s Committee over the construction of a polypropylene (PP) and liquefied petroleum gas (LPG) plant project in the southern province.

Hyosung will build the plant on an area of 608,910 sq m at the Cai Mep Industrial Zone with investment of $1.2 billion, divided into two phases.

The first phase involves building an underground warehouse containing LPG, with investment of $133 million, and the first PP plant in the project, with investment of $336 million and a capacity of 300 million tons per year.

The second phase will build a PDH optical fiber plant with investment of $496 million and a second PP plant with investment of $226 million and a capacity of 300,000 tons per year.

The Hyosung Corporation is one of the largest conglomerates in South Korea and specializes in manufacturing fiber for automobile tires, spandex fiber, nylon, steel fiber, and other fiber.

In Vietnam it has a factory at the Nhon Trach 5 Industrial Zone in southern Dong Nai province, processing fiber (such as spandex, nylon, polyester, and carpet fiber), producing steel fiber for automobile tires (such as tire cord, bead wire, and saw wire), and manufacturing electrical motors.

Hyosung, in its proposal, pledged to ensure environmental protection by using modern and innovative technologies.

According to the latest report from the Foreign Investment Agency under the Ministry of Planning and Investment, South Korea retained its position as Vietnam’s leading source of FDI in 2016, with a total of $5.7 billion in 5,747 projects, primarily in the processing and manufacturing sector and the real estate sector.

The MoU signing ceremony was held at a meeting between local authorities and enterprises making their first investments in Ba Ria Vung Tau province this year. Local leaders also licensed eight domestic and foreign projects with investment of $311 million and $156 million, respectively.

The province has so far attracted 301 foreign-invested projects worth nearly $26.7 billion and 451 domestic projects valued at over $10.67 billion.

Mr. Nguyen Hong Linh, Secretary of the Provincial Party Committee, said the province would take measures to reform administrative procedures and create a vibrant and responsible business climate.

The provincial economy grew 5.6 per cent last year and it contributed in excess of $1.41 billon to the State budget and more than $434,000 to social welfare programs, and also generated over 22,000 jobs.

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