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South Korea’s Hyosung plans to build data center in Vietnam
Ngoc Mai 12:51, 2024/05/11
Vietnam is recognized as one of the world's top 10 emerging data center markets, with a potential market value of US$1 billion by 2028, driven by an average annual growth rate of nearly 11%.

South Korea’s Hyosung Group intends to invest in a large data center in Ho Chi Minh City's high-tech zone.

 Deputy Prime Minister Le Minh Khai (r) and Hyosung CEO Lee Sang Woon. Source: VGP

The information was shared by Lee Sang Woon, Vice Chairman and CEO of Hyosung Group, during a meeting with Deputy Prime Minister Le Minh Khai on May 10.

At the meeting, Lee stated that the conglomerate currently ranks third globally in ATM manufacturing. The company also plans to invest in an ATM manufacturing plant in Vietnam to participate in the domestic banking system's modernization process.

He also mentioned the need for investment in a large data center in Ho Chi Minh City's high-tech zone.

Currently, Vietnam has a total of 32 commercial data centers, including both small and medium-sized ones. Among them, four major domestic providers (Viettel, VNPT, FPT, CMC) account for about 97% of the market share. However, the market scale is still relatively small compared to neighboring countries such as Singapore, Indonesia, Malaysia, Thailand, and the Philippines.

Nevertheless, Vietnam is considered one of the top 10 emerging data center markets in the world. According to Research and Markets, this market could reach $1 billion by 2028, with an average annual growth rate of nearly 11%.

During the meeting, Deputy Prime Minister Le Minh Khai emphasized that the government always gives priority to improving the investment environment, creating favorable conditions for corporations to invest and operate efficiently, and promoting sustainable development.

Khai suggested that Hyosung should also pay attention to environmental protection and strengthen cooperation with domestic enterprises, utilizing materials that Vietnam can produce to ensure the well-being of workers.

Currently, South Korean companies have nearly 10,000 active projects in Vietnam, with a total registered investment capital of about $87 billion, the largest among all countries.

Among them, Hyosung is the third largest South Korean FDI partner in Vietnam, after Samsung and LG. Since 2007, the conglomerate has invested over $4 billion in Vietnam, primarily in industries such as raw materials, textiles, chemicals, and power systems. Most of their factories in Korea have been relocated to Vietnam.

Most recently, Hyosung has invested in a carbon fiber plant and is focusing on advanced, environmentally friendly materials to produce bio-BDO products. This will be the most advanced plant in the world with a total investment capital of $730 million, located in Ba Ria - Vung Tau Province.

TAG: vietnam south korea vietnam hyosung Data Center
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