Hyosung Corporation plans to invest $2 billion in Vietnam, including a data center in Ho Chi Minh City, expanding its presence in advanced materials, biofuels, and financial technology. Hyosung has already invested $3.5 billion in Vietnam since 2007, making it one of the most profitable South Korean investments. South Korea is the largest investor in Vietnam with nearly 10,000 projects and $87 billion in investments.
Hyosung Corporation, a South Korean industrial conglomerate, has expressed its intention to build a data center in Saigon Hi-Tech Park ("SHTP") in Ho Chi Minh City, Vietnam.
This move is part of Hyosung's broader plan to invest $2 billion in Vietnam in 2024, which includes expanding its presence in advanced materials, biofuels, and financial technology sectors.
Hyosung has already invested over $3.5 billion in Vietnam, as reported by the company's deputy chairman, Cho Hyun-sang, during a meeting in Davos, Switzerland. Hyosung entered Vietnam in 2007 and has been among the most profitable for the South Korean industrial giant's foreign investments.
South Korea is a major investor in Vietnam with nearly 10,000 projects active in Vietnam with a total investment of $87 billion, the most of any other country. One of those is a $730 million carbon fiber plant by Hyosung in the the southern province of Ba Ri.
Vietnam's Data Center Industry and Growing Demand
Vietnam's data center's growing demand is driven by the growing demand for digital infrastructure in the region, as the country currently has 32 medium and small commercial data centers, with major local providers Viettel, VNPT, FPT, and CMC having a 97% market share.
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Regulations are also driving companies to change how they store data generated in Vietnam. In 2022, laws were passed by the communist nation mandating that companies operating in Vietnam must store specific types of data within the country for a minimum period of 24 months. When passed, companies such as Google and Amazon resisted as it goes against the principles of free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ("CPTPP").
Putting aside the controversy, many multinational corporations operating in Vietnam have no choice but to invest in expanding their data center capacity in the country to comply with the regulations.
Alibaba recently announced its intention to build a data center to comply with the regulations. FPT Telecom started construction of a 10,000 square meter (i.e., 110,000 square feet) data center in 2020 which includes 3,600 racks. NTT, the largest Japanese telecommunications company, recently announced a JV to build a data center across 3,100 square meters (33,400 square feet) to offer 6MW of capacity.
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