"We Can't Go On Like This"... Samyang Foods to Pour KRW 218.6 Billion Into Vietnam Plant: What's Going On?

Samyang Foods to Establish Production Plant in Vietnam
Plant Construction Scheduled for Completion in January 2029
Second Overseas Production Base After China

Samyang Foods will establish a production plant in Vietnam to better meet global demand. This will be its second overseas base after China, with a total investment of 218.6 billion won.

Samyang Foods' new headquarters in Myeong-dong. Photo courtesy of Samyang Foods.

Samyang Foods said on November 11 that it would establish a production subsidiary in Vietnam and build a local plant in Thuan Thanh. To this end, it will invest 131.1 billion won in its Vietnamese production subsidiary to acquire a 100% stake. The project to establish the production plant is scheduled to be completed by January 31, 2029.

Samyang Foods said, "To prepare for future growth in demand, we plan to develop land and buildings in advance that can accommodate up to eight production lines, and initially introduce one line for non-fried noodles."

Samyang Foods plans to establish regional production bases by building a plant in Vietnam, thereby diversifying risks such as geopolitical issues and logistics tariffs and ensuring a stable response to growing demand in each market. The company also said Vietnam offers strong manufacturing cost competitiveness, as it can reduce procurement costs for raw materials such as wheat flour and palm oil, as well as labor costs.

The company emphasized that Vietnam also offers the ability to target Europe and the Association of Southeast Asian Nations (ASEAN) simultaneously in terms of logistics and tariffs. It added that it also considered the fact that construction permits and building work can be completed more quickly than in the United States or Europe, and that it can reduce capital expenditures (CAPEX) and operating expenses (OPEX).

Samyang Foods disclosed that "the estimated investment includes land, factory construction, and equipment for one non-fried noodle production line, and plans for additional production lines will be finalized in stages at a later date."

The production plant in Vietnam is expected to become Samyang Foods' second overseas production base. The company is currently building its first overseas production facility in Jiaxing, Zhejiang Province, China, which is scheduled for completion in December.

This content was produced with the assistance of AI translation services.