SK Innovation and HD Hyundai (South Korea) step up cooperation with Khánh Hòa Province (Vietnam)

DNHN - The new cooperation and investment expansion plans of South Korea’s leading conglomerates reaffirm Khánh Hòa’s growing appeal in the eyes of international investors.

On August 12, within the framework of General Secretary Tô Lâm’s state visit to South Korea, the Vietnam–Korea Economic Forum hosted the signing ceremony of multiple Memoranda of Understanding (MoUs) between ministries, agencies, localities, and enterprises from both countries.

Among the agreements, the People’s Committee of Khánh Hòa Province and SK Innovation – a subsidiary of SK Group (South Korea) – signed a cooperation agreement to develop the Specialized Energy Industrial Cluster (SEIC). The project includes investment in building a liquefied natural gas (LNG) power plant in Khánh Hòa, developing a distributed energy resources (DER) system, and LNG-related logistics infrastructure.

This project, along with other planned investments from SK Group, is expected to generate potential socio-economic impacts of up to approximately USD 45 billion in the South Central Coast region, including Khánh Hòa Province, by 2050.

The new cooperation project is anticipated to become a fresh driver for the province’s energy industry, enhance electricity supply capacity and LNG logistics services, and contribute to Vietnam’s clean energy transition strategy.

According to the Foreign Investment Agency (FIA), after a recent merger, Khánh Hòa Province now hosts 192 foreign-invested projects with a total registered capital of over USD 7.21 billion, ranking 15th nationwide in FDI attraction. South Korea remains one of the largest investors in the province.

On the same day, Khánh Hòa’s leaders also held a working session with representatives of HD Hyundai – one of South Korea’s leading industrial conglomerates in shipbuilding and heavy industry.

During the meeting, HD Hyundai executives expressed appreciation for the province’s support over the years and revealed that they are studying plans to expand their plant in Nam Vân Phong to increase shipbuilding capacity and develop a supporting industrial ecosystem for the shipbuilding sector in the locality.

The company’s goal is to optimize the supply chain, enhance added value, and attract more satellite businesses to participate. This orientation aligns perfectly with the province’s industrial development strategy, promising new growth momentum for both sides.

Provincial Party Secretary Nghiêm Xuân Thành also emphasized the significant role of HD Hyundai – one of the most prominent and successful South Korean FDI projects in Vietnam and in Khánh Hòa – with over 28 years of operation in Nam Vân Phong.

In particular, Khánh Hòa Province is focusing on boosting the maritime economy and industrial development, with Nam Vân Phong as a key hub, while investing in infrastructure, improving its competitiveness index, and attracting high-tech and environmentally friendly projects.

Therefore, the province will continue to foster an open and transparent investment environment, working closely with enterprises, especially strategic investors like HD Hyundai, towards long-term and sustainable development.

Earlier this year, the Conference for HD Hyundai Mipo’s (South Korea) subcontractors was held in Khánh Hòa, gathering representatives from over 60 supporting industry enterprises from South Korea seeking investment cooperation opportunities in the province. The aim is to create a strong enough ecosystem for the shipbuilding industry and related sectors in the region.

The expansion and new investment plans by South Korea’s leading conglomerates not only reaffirm Khánh Hòa’s growing appeal to international investors but also highlight its potential to rise as a strategic industrial and service hub in the South Central Coast region.

Phương Vy