Hyosung Heavy Industries Signs 2 MOUs with Vietnam on K-Power Equipment

Hyosung Heavy Industries signed an MOU with Vietnam Electricity to enhance the power grid, and another MOU with the Vietnam Investment Promotion Center for the construction of a new high-voltage motor plant.

□ Hyosung Heavy Industries signed an MOU with Vietnam to stabilize the power grid and cooperate in power solutions

Hyosung Heavy Industries signed an MOU with Vietnam Electricity (EVN) on April 23 at the Korea-Vietnam Business Forum held at the JW Marriott Hotel in Hanoi to manage power assets, stabilize the power grid, and enhance technological capabilities.

Demand for electricity is rapidly increasing in Vietnam due to continuous economic growth and industrialization as well as the expansion of data centers and hi-tech industries, with securing the stability of power systems amid the expansion of renewable energy emerging as a major challenge. The Vietnamese government plans to expand the total power capacity to 221 GW by 2030 under the 8th Power Development Plan (PDP8) and invest approximately USD 136 billion in developing power sources and constructing transmission networks.

Accordingly, Hyosung Heavy Industries will cooperate in 3 areas: pilot application of an AI-based power asset management solution (ARMOUR+); enhancement of stability of Vietnam’s power grid through the expanded deployment of STATCOM; and support for technical education and training to strengthen the design and manufacturing capabilities of Dong Anh Electrical Equipment Corporation (EEMC), a power equipment subsidiary of Vietnam Electricity.

□ Signed an MOU to build Vietnam’s first high-voltage motor plant

On this day, Hyosung Heavy Industries also signed an MOU with the Investment Promotion, Information, and Support Center (IPC) under Vietnam's Ministry of Finance to support new construction and investment in Vietnam’s first high-voltage motor plant.

Under this agreement, Hyosung Heavy Industries will invest approximately USD 50 million to establish a production base at the Vina Mechanical & Electrical (M&E) plant site in Dong Nai Province, targeting annual sales of USD 100 million. The company plans to commence mass production in February 2027, with production facilities for 25,000 kW-class high-voltage motors used in nuclear power plants in place. The Vietnam Investment Promotion Center will support the entire plant construction process from provision of information on the site and administrative support and permits to coordination with the relevant authorities.

Hyosung Heavy Industries invested approximately USD 42 million in 2015 to establish a low-voltage motor production base and build a local supply chain. The construction of the new high-voltage motor plant will expand the motor business portfolio of the company while enabling it to carry out the entire high-voltage motor manufacturing process in Vietnam for the first time as a foreign company.

High-voltage motors operate at voltages above 1,000 V, and they are utilized in large-scale industrial facilities such as power plants and industrial plants. Demand for high-efficiency, high-voltage motors is also expanding driven by the recent increase in demand for industrial power, and their importance is forecast to grow in data center cooling systems and new & renewable energy-connected facilities. According to market research firm Omdia, the global high-voltage motor market is expected to grow at an annual average of over 5% and is projected to reach approximately USD 6.5 billion by 2028.

□ Hyosung to expand investment across all business sectors following entry into Vietnam in 2008...achieving shared growth with Vietnamese economy

Hyosung has invested approximately USD 4 billion across all business sectors since entering Vietnam in 2008 and established 6 production bases across the country including the southern region (Dong Nai Province, Ba Ria-Vung Tau Province), central region (Quang Nam Province), and northern region (Bac Ninh Province) of Vietnam, employing more than 10,000 local employees.

This investment is considered the third-largest scale among Korean companies that invested in Vietnam, with sales from its local subsidiary accounting for nearly 1% of Vietnam’s total exports. Based on such large-scale investment, the company has contributed to the economic growth of Vietnam while also expanding its global supply chain and strengthening its growth base.

“This agreement is significant since it enables Hyosung to expand its business foundation in Vietnam from textiles to the heavy industry sector. Going forward, we will grow together with Vietnam as global partners,” Hyosung Chairman Cho Hyun-joon said.