South Korean food companies are stepping up investment in Vietnam, a country of about 100 million people, treating it as a “second home market” by expanding local production and tailoring products for Vietnamese consumers. Backed by annual growth in the 6% range and a large young consumer base, the companies aim to strengthen their foothold while using Vietnam as an export base.
Industry officials said April 22 that major South Korean food makers have expanded in Vietnam since the late 1990s, drawn by its growth potential. Vietnam’s 2025 economic growth rate was provisionally estimated at about 8.02%, and per capita GDP was about $5,026, placing it in the upper-middle-income category. With the middle class projected to reach 75% of the population by 2030, companies are shifting from simple exports to strategies centered on local manufacturing to gain market share.
Daesang, which established a local unit in 1994, is accelerating a shift from bio and starch sweeteners into a broader food business. In 2016, it entered Vietnam’s meat-processing market by acquiring local company Duc Viet Food, the first such move by a South Korean food company. Daesang has since expanded its base, maintaining the top market share in Vietnam’s seaweed products and strengthening its K-food lineup, including tteokbokki and kimchi seasoning. Daesang’s Vietnam sales totaled 235.9 billion won last year, nearly double the 2018 level. It recently invested 30 billion won to expand its Hai Duong and Hung Yen plants, boosting capacity.
Orion, which set up its Vietnam unit in 2005, has focused on localization for nearly 20 years. Using marketing tied to the local concept of “Tinh,” and products tailored to local tastes — including “Bong Bang,” inspired by traditional folktales, and the rice snack “An” — Orion posted 514.5 billion won in sales in 2024, topping 500 billion won for the first time. Orion has designated Vietnam as a key market in its “post-China” strategy and is investing a total of 130 billion won. It plans to expand its Yen Phong plant in Hanoi and build a third factory scheduled for 2026, lifting local production capacity to the equivalent of 900 billion won.
Ramen makers are also intensifying their push. Vietnam leads the world in per capita instant noodle consumption, at 81 servings in 2024. Paldo completed a second factory in Tay Ninh province in southern Vietnam in 2024, building a system that can produce 700 million ramen units a year across its two plants. Paldo plans to keep expanding the second plant and use Vietnam as a production and export hub and a springboard into other Southeast Asian markets.
Ottogi operates two manufacturing plants, in Binh Duong near Ho Chi Minh City and in Bac Ninh in the north. It has sustained average annual growth of more than 18% over the past five years and posted 89 billion won in sales last year. The company produces about 770 items, including “Mini Jin Ramen” and “Oppa Ramen,” reflecting local eating habits. It has also obtained halal certification and is moving to expand exports to Muslim markets.
In alcoholic beverages, HiteJinro is making a major bet. Vietnam was HiteJinro’s first export market for soju, and about 60% of soju exported from South Korea to Vietnam is HiteJinro products. The company is building its first overseas production plant in Thai Binh province, targeting completion this year. Designed as a smart factory and covering an area about 11 soccer fields, the plant is expected to produce up to 5 million cases of soju a year. HiteJinro aims to improve logistics efficiency and cost competitiveness through local production and extend Jinro’s dominance — the top-selling distilled spirit brand in Vietnam — across Southeast Asia.
“Vietnam has cultural similarities with Korea and a solid base of food consumption, so barriers to entry are relatively low,” an industry official said. “Securing cost competitiveness through local production and close-to-market marketing is raising Vietnam’s value as a forward base for global expansion.”
* This article has been translated by AI.
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