Hansol Home Deco Completes Vietnam Flooring Factory Construction... Accelerates Global Market Expansion

Expecting Synergy from Growth in Vietnam Maru Flooring Market, Expanding from Building Materials to Furniture Materials

Hansol Home Deco Vietnam Corporation head Beomseok Seo (wearing glasses in the middle of the back row) and employees are taking a commemorative photo at the completion ceremony.
[Photo by Hansol Holdings]

[Asia Economy Reporter Kim Jong-hwa] Hansol Home Deco completed the construction of a factory for local production of reinforced flooring and laminate flooring in the Dak Nong area near Ho Chi Minh City on the 11th (local time) and held a completion ceremony.

After establishing Hansol Home Deco Vietnam Corporation last December, Hansol Home Deco began building the flooring production factory in January. Based on Hansol Home Deco's long-standing flooring production know-how and the latest and optimal facilities, the Vietnam factory can produce up to 3.5 million square meters of flooring annually.

With the completion of the Vietnam factory, Hansol Home Deco can now provide a one-stop service from production to distribution in the local Vietnamese market, securing price competitiveness through the raw material supply system in the region.

In particular, Hansol Home Deco conducted over two years of local market research before entering Vietnam and has been carrying out pre-sales activities leveraging its brand power since last year before starting product production. Through this, it signed a partnership contract with the number one building materials distributor in the Vietnamese market and secured a contract to supply 160,000 square meters of products to local construction companies.

Hansol Home Deco plans to firmly capture the rapidly growing Vietnamese market by focusing its sales power locally based on the quality know-how accumulated in the Korean market. It also plans to actively promote online marketing targeting Vietnamese consumers using Facebook and YouTube channels such as 'Alssulinjab'.

Vietnam is experiencing an expanding domestic market with continuous increases in national income and urbanization, recording a high GDP growth rate of around 7% as of 2018. Especially, reinforced flooring is showing a high growth rate of over 10% annually, supported by the increase in apartments.

In fact, the Vietnamese reinforced flooring market is expected to grow from 8 million square meters in 2018 to 14 million square meters annually by 2023. Recently, due to rapid urbanization and the increase in apartment-style housing, the flooring market is shifting from tile-centered to reinforced flooring, increasing the market value further.

Moreover, Vietnam currently lacks environmental standards for flooring materials, and mainly installs E2-grade flooring, which cannot be distributed domestically in Korea. Therefore, if differentiated products with eco-friendliness and functionality, along with Korea’s excellent installation quality, are actively promoted, it is expected to attract consumers seeking high-quality products.

Seo Beom-seok, head of Hansol Home Deco Vietnam Corporation, said, "We expect to simultaneously achieve quality and cost competitiveness by combining the production technology accumulated domestically with abundant local raw materials," adding, "We plan to expand our business not only in building materials but also in furniture materials through locally tailored strategies and marketing suited to regional characteristics, and eventually enter broader global markets including Southeast Asia."

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