Donghwa Enterprise Breaks Ground on 'Ganghwamaru·MDF' Factory in Hanoi, Vietnam

Kim Myung-sik, CEO of Donghwa Vietnam (center), is attending the groundbreaking ceremony of the reinforced flooring and medium-density fiberboard (MDF) factory held on the 22nd in the Thai Nguyen province near Hanoi, Vietnam, and is taking a commemorative photo with local officials.

[Asia Economy Reporter Kim Daeseop] Dongwha Enterprise announced on the 23rd that it held a groundbreaking ceremony for a laminate flooring and medium-density fiberboard (MDF) factory in the Thai Nguyen Province area near Hanoi, Vietnam.

The groundbreaking ceremony was held the day before with the attendance of Kim Myung-sik, CEO of Dongwha Vietnam, executives and employees of Dongwha Enterprise's local subsidiary, and local officials. CEO Kim Myung-sik stated, "Through the construction of the Hanoi factory, we will secure the MDF and laminate flooring market in northern Vietnam and strengthen our position as a solid market leader in the board and building materials sector."

The Hanoi factory will be built on a total site area of 500,000㎡ and plans to produce 370,000㎥ of MDF and 3.62 million ㎡ of laminate flooring annually. Approximately 180 billion KRW will be invested in the factory's completion and related facilities. The Hanoi laminate flooring factory is scheduled to be completed in April 2021, and the MDF factory aims for completion in August of the same year.

After the completion of the Hanoi factory, Dongwha Enterprise will have a total MDF production capacity of 1.07 million ㎥ by adding the existing annual production of 700,000 ㎥ from VRG Dongwha. The company explained that it will firmly establish its position as the number one MDF producer in Vietnam based on this overwhelming production volume.

Dongwha Enterprise first entered the southern Vietnam MDF market centered around Ho Chi Minh City in 2008 by establishing VRG Dongwha in a joint venture with the Vietnamese state-owned enterprise VRG. The newly constructed Hanoi factory will be operated independently without a joint venture with local companies, based on the experience of MDF business operations in southern Vietnam, and is expected to generate higher profits than VRG Dongwha.

A Dongwha Enterprise official said, "The Hanoi factory will actively respond to market demand due to the increase in construction activity in the northern region," adding, "We expect to achieve at least a 40% market share from 2023 when production volume reaches full scale."

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