Bae In Han, General Director of Hyosung Dong Nai Co., Ltd.: Dong Nai offers many opportunities for investors

Currently, the Hyosung Group (South Korea) is the largest foreign investor in Dong Nai province, with a total investment of nearly 2.5 billion USD. This capital has been invested in Hyosung Dong Nai Co., Ltd. and Hyosung Vietnam Co., Ltd., both of which are located in Nhon Trach 5 Industrial Park. According to Bae In Han, General Director of Hyosung Dong Nai Co., Ltd., Dong Nai is a convergence point of potential and advantages, waiting for businesses to come, invest, and unlock its opportunities.

Bae In Han, General Director of Hyosung Dong Nai Co., Ltd. Photo: Le Kiet

In 2007, Hyosung Group chose Dong Nai as its first investment destination in Vietnam. Following its success in Dong Nai, the group expanded its investments to several other provinces and cities nationwide. With an initial capital of around 600 million USD, Hyosung Group’s capital has increased eightfold after nearly 20 years of investment in Vietnam. The group is expected to continue expanding its investments in Dong Nai and other localities.

Leading the fiber manufacturing industry

* What is the core strategy that Hyosung Dong Nai Co., Ltd. has chosen to maintain stable production and sustain export growth in the context of a highly volatile market?

- Hyosung Group currently operates 10 companies in Vietnam, including 8 in the South, 1 in the Central region, and 1 in the North. Most of these companies manufacture spandex, nylon, tire cord, and PP fibers, synthetic materials with high elasticity and durability used in textiles and industry, for both export and domestic consumption. To meet the increasingly high demands of foreign partners, the Hyosung Group has established a self-contained raw material production chain in Vietnam, reducing dependency and enhancing operational autonomy.

For example, Hyosung Group currently operates the world’s largest spandex production system, with multiple plants based in Vietnam. Additionally, the primary raw material for spandex, PTMG (a liquid polymer compound), is also produced by the Hyosung Group in Vietnam. Furthermore, the group is preparing to manufacture BDO (a liquid organic compound produced through petrochemical technology), which serves as a key input in PTMG production. Building a full-scale production chain, from base raw materials to finished products, enables Hyosung Group to minimize the impact of global supply chain disruptions and strengthen its long-term competitiveness.

* Could you share the new technologies that Hyosung Dong Nai Co., Ltd. is applying to enhance product quality and competitiveness in the international market?

- Hyosung Group currently produces spandex at 10 plants across six countries worldwide. All spandex production facilities are connected to monitor operational data in real time. This data is used to optimize production conditions and serve as a foundation for maintaining the highest product quality. In South Korea, our research institute continuously develops new technologies and transfers them to overseas plants. In Vietnam, under the guidance of the Korean Research Institute, we constantly strive to optimize production technology.

* Foreign customers are now demanding increasingly higher standards for green production. What solutions has Hyosung Dong Nai Co., Ltd. implemented to meet these criteria and move toward sustainable development?

- Hyosung Group is implementing a sustainable development strategy based on ESG, a set of criteria used to assess corporate sustainability across three pillars: Environment, Social, and Governance. Currently, spandex and nylon fibers are being produced using recycled materials, making them environmentally friendly products.

For BDO, the base material for PTMG and the “raw material of the raw material” used in spandex production, Hyosung Group is applying advanced technology to reduce carbon emissions significantly. Traditionally, BDO is produced from coal, which results in high levels of emissions. Therefore, the Hyosung Group is transitioning to BDO production from sugarcane, contributing to environmental protection and mitigating the impacts of climate change.

At the same time, the group is advancing several clean energy initiatives, such as rooftop solar and other environmentally friendly energy sources. All Hyosung plants in Dong Nai are currently ISO 14001 certified, an international standard for environmental management systems. The company is also in the process of obtaining EcoVadis certification, an international recognition for sustainable development based on ESG criteria.

Currently, Hyosung is one of the three largest South Korean investors in Vietnam (following Samsung and LG). The group has invested approximately 5 billion USD in Vietnam so far, and its investment capital in the country is expected to continue rising in the coming years.

Linking to increase product localization rates

* In its supply chain development strategy in Vietnam, how has Hyosung Group linked with Vietnamese enterprises to increase product localization and added value?

- In Vietnam, Hyosung Group is making continuous efforts to increase the localization rate of its products. Therefore, Vietnamese enterprises with quality products that meet green standards and offer competitive prices have the opportunity to join the supply chain for the group's plants in Dong Nai and other provinces nationwide. Currently, the Hyosung Group is partnering with Vietnamese businesses in various areas, including packaging materials and logistics. In the engine segment specifically, the company plans to dispatch procurement specialists from South Korea to Vietnam to identify and develop additional local suppliers, thereby further boosting product localization.

* As a labor-intensive enterprise, how has Hyosung Dong Nai Co., Ltd. implemented training programs, skills development, and employee welfare initiatives in recent years?

- Hyosung Group always prioritizes local labor and provides numerous incentives and welfare policies for employees. At the same time, the group implements policies to attract high-quality human resources who are committed to long-term engagement with the company. During its operations, Hyosung Group continuously trains and promotes outstanding Vietnamese staff to managerial positions in production and business operations. Many key positions within the company are led by Vietnamese leaders who perform effectively.

* In recent years, Hyosung Group has actively participated in social activities in Dong Nai and other localities. Could you share some of the notable social programs the company has implemented and the direction for the coming period?

- Hyosung Group is carrying out numerous community and sustainable development initiatives, including the “Smile Expedition” program, building “Hyosung House of Hope,” establishing kindergartens and libraries, donating computers and wheelchairs, among other activities.

The “Smile Expedition” program annually invites doctors and medical staff from South Korea to provide free medical check-ups, treatment, and medication for residents. Doctors also visit schools to conduct health education sessions and distribute eyeglasses to students.

Through the “House of Hope” program, Hyosung Group collaborates with the Dong Nai Union of Friendship Organizations to improve living conditions for residents. This year, Hyosung Group has built and renovated six houses for families facing difficult circumstances.

* During its investment in Dong Nai, what challenges and advantages has the company encountered? Does the company have any proposals to facilitate production in the coming period?

- When Hyosung Group first invested in Dong Nai in 2007, it received strong support from provincial and local authorities. As a result, the group’s operations in Dong Nai have been relatively smooth and effective. Hyosung has continuously expanded its investments in Dong Nai and in various other provinces and cities. With its role as a regional transportation hub, well-developed industrial parks, and stable climate, Dong Nai offers highly favorable conditions for investment in industry and other sectors.

However, in recent times, the labor supply in Dong Nai has shown signs of decline. To contribute to the province’s development, we hope Dong Nai will introduce additional policies to attract working-age labor. At the same time, we hope the provincial authorities will place greater emphasis on developing social infrastructure such as housing, transportation, and education, both to attract new workers and to retain the existing workforce.

* Thank you for your insights!

By Khanh Minh - Translated by Dang Huyen, Minho