[Vnbiz] Kumho Asiana to Invest $415 Million in Vietnam

[Phan, Tai]

Kumho Asiana to Invest $415 Million in Vietnam
 
 

By Na Jeong-ju
Korea Times Correspondent



 

HO CHI MINH, Vietnam _ Kumho Asiana Group plans to invest $415 million in Vietnam to construct high-rise buildings and a tire-making plant in one of the largest overseas investments by a South Korean company.

Using Vietnam's abundant natural resources and geopolitical advantages, the group plan to build a solid business platform in the country to advance into neighboring Asian markets, according to group officials.

In a major step toward achieving the goal, the group's construction subsidiary, Kumho Engineering & Construction, plans to build a complex of hotel and office buildings, called ``Kumho Asiana Plaza,'' in the center of this capital city.

The group said it will spend $260 million to construct the complex that includes a 32-storty apartment building, a 21-story hotel and various convenience facilities. When completed, the 32-story apartment building will be Vietnam's second-highest skyscraper.

``The Kumho Asiana Plaza will become a symbol of our investment in Vietnam and economic cooperation between Korea and Vietnam,'' Kumho Asiana Chairman Park Sam-koo said. ``We've chosen Vietnam for our global investment because it is very important for South Korea, historically, culturally and economically.''

Construction began 10 years ago, but the conglomerate suspended the project in the late 1990s due to the Asian financial crisis. It has decided to resume the project because of its strategic importance for growth, group officials said. Construction is scheduled to end about October 2009.

For the ground-breaking ceremony, which will be held at 4:30 p.m. today, the group invited Vietnam's Prime Minister Nguyen Tan Dung, former Prime Minister VoVan Kiet, South Korea's Ambassador to Vietnam, Kim Eui-ki, and some 200 other guests.

``Initially, we planned to complete the construction through joint investment with Vietnam, but we took over the full rights for the project,'' a group official said.

The construction of Kumho Asiana Plaza opens an opportunity for Kumho E&C to increase its presence in Vietnam. The company plans tyo participate in government-initiated engineering and development projects.

``We have a big picture for our globalization, and projects in Vietnam will be very significant,'' a Kumho E&C official said. ``We are seeking to make inroads into Southeast Asian countries, such as Cambodia, the Philippines, Indonesia. In addition, we are looking to Middle East countries, such as Kuwait, Saudi Arabia, Yemen and Oman.''

The company signed a contract with InterContinental Hotel Group, a global hotel chain, on Sept. 29 for the operation of a hotel that will be located inside the Kumho Asiana Plaza. The hotel, to be called ``InterContinental Asiana Saigon,'' will be developed into a world-class hotel, it said.

The group's tire making unit, Kumho Tires, plans to build a production plant inside the My Phuoc industrial complex in Binhduong. The factory, to be built on a 300,000 square meter site, will produce 3.15 million automobile tires annually.

The plant is the firm's fourth overseas production factory. Since the company completed a plant in Nanjing, China in 1999, it has built production lines in Changchun and Tianjin in China.

If the Binhduong plant is completed in 2008, the company will be produce 5.7 million tires annually _ 30 million from its plants in South Korea and 27 million from its overseas plants. 



jj at koreatimes.co.kr 

10-24-2006