South-Korea’s Kumho Asiana Group is muscling up its investment in Vietnam with expansion of a tire plant in Binh Duong and a new large-scale Hanoi property project.
Kumho Asiana Group chairman Sam-Koo Park, during a visit to the Ministry of Planning and Investment last week, said manufacturing subsidiary Kumho Tire will invest an additional $100 million in Vietnam to expand output capacity of its tire plant from 3.15 million to 5.6 million units per year. This will take Kumho Tire’s investment to $300 million. “We will implement this expansion plan by the end of this year,” said Park.
The Kumho Tire plant started production in southern Binh Duong province in 2008 with 90 per cent of its products for export. Park said the expansion plan ought to have been executed since 2009, but it was delayed due to the global financial crisis. “We overcame a difficult period and are making a detailed plan for the expansion in the second phase,” said Park, adding that the firm would further expand this Vietnam-based plant till it reached 13 million units of output capacity.
“We always appreciate Vietnam and want to be a long-term investor here. The key reasons for us to keep on investing in Vietnam are that Vietnam and South Korea have similar culture and Vietnamese people are brilliant,” he said.
Besides the tire plant in Binh Duong, Kumho Asiana Group developed a property project named Kumho Asiana Plaza in Ho Chi Minh City, comprising hotel, office building, shopping mall and residential apartments.
“Kumho Asiana Plaza is considered as an iconic part of our investment in Vietnam and we want to develop another project like [it],” said Park. He added the group was looking for a site in Hanoi to make this plan come true.