Samyang Foods will invest a total of 218.6 billion won to build a production facility in Vietnam. This investment aims to secure competitiveness in raw material procurement and labor costs while responding to increasing demand in European and ASEAN markets. The company plans to distribute production bases regionally to reduce risks associated with geopolitical uncertainties and fluctuations in logistics and tariffs.
On November 11, Samyang Foods announced its plans to establish a local production subsidiary and factory in Vietnam. The company will invest 131.1 billion won to acquire 100% ownership of the local subsidiary, which will oversee the construction of the factory in Tuyen Quang, Vietnam. The expected completion date is January 31, 2029.
The total investment of 218.6 billion won includes costs for land acquisition, factory construction, and the installation of one noodle production line. To prepare for future demand growth, the land and building will be designed to accommodate up to eight production lines, although the initial setup will focus on one line. Plans for additional production lines will be confirmed in phases.
This investment focuses on securing production capacity to meet global demand while dispersing risks that may arise from concentrating production in specific regions. By establishing production bases in different areas, the company aims to mitigate the impact of geopolitical issues, logistical disruptions, and tariff changes on supply.
Samyang Foods chose Vietnam as its second overseas production base due to its competitive manufacturing costs. The company believes it can reduce procurement costs for raw materials such as flour and palm oil, as well as labor costs in Vietnam. Additionally, the location is advantageous for targeting major regions like Europe and ASEAN simultaneously in terms of logistics and tariffs.
The company also considered the time and costs required for factory construction. Compared to the United States or Europe, it can shorten the permitting and construction periods, and there are advantages in initial capital investment and operational costs once the factory is operational.
A representative from Samyang Foods stated, “By establishing a production facility in Vietnam, we aim to separate regional production bases to disperse risks associated with geopolitical issues, logistics, and tariffs, while responding stably to increasing demand in each market.”
Meanwhile, Samyang Foods is nearing the completion of its first overseas production base in Jiaxing, Zhejiang Province, China. The Vietnam factory is expected to become the company's second overseas production facility.
* This article has been translated by AI.
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