Hyosung Heavy Industries Expands Power Grid Cooperation with Vietnam... Establishes First High-Voltage Electric Motor Factory

Signed MOU with Vietnam Electricity for Power Asset Management

Establishing High-Voltage Electric Motor Production Base with $50 Million Investment

A panoramic view of the Hyosung Vina Gijeon factory located in Dong Nai, Vietnam. Hyosung Heavy Industries

Hyosung Heavy Industries has decided to expand its cooperation with Vietnam for the advancement of the power grid, while also establishing its first high-voltage electric motor factory in the country.

On April 23, Hyosung Heavy Industries announced that it had signed a memorandum of understanding (MOU) with Vietnam Electricity (EVN) at the Korea-Vietnam Business Forum held at the JW Marriott Hotel in Hanoi. The agreement aims to strengthen cooperation in power asset management, power grid stabilization, and technology capacity building.

As Vietnam's economic growth drives increased demand for electricity and the adoption of renewable energy expands, ensuring the stability of the power system has become a critical task. Through the 8th Power Development Plan (PDP8), the Vietnamese government plans to expand total power generation capacity to 221 GW by 2030 and invest about 136 billion dollars in developing power sources and building transmission networks.

To this end, Hyosung Heavy Industries intends to collaborate in three areas: pilot application of the AI-based power asset management solution (ARMOUR+), enhancement of Vietnam's power grid stability through expanded adoption of STATCOM, and support for technical education and training to strengthen the design and manufacturing capabilities of Dong Anh Electrical Equipment Manufacturing Joint Stock Company (EEMC), a power equipment subsidiary of Vietnam Electricity.

On the same day, Hyosung Heavy Industries also signed an MOU with the Investment Promotion Center (IPC) under the Ministry of Finance of Vietnam to support investment in the construction of the country's first high-voltage electric motor factory. Under this agreement, Hyosung Heavy Industries plans to invest about 50 million dollars to establish a production base with annual sales capacity of 100 million dollars at the Vina Electric Factory site in Dong Nai Province.

The company will equip the new facility to produce high-voltage electric motors with a capacity of 25,000 kilowatts (kW) for use in nuclear power plants and other applications, aiming to begin mass production in February 2027. The Investment Promotion Center will support the overall factory construction process, including providing site information, obtaining permits and administrative support, and coordinating with relevant agencies.

Hyosung Heavy Industries previously invested about 42 million dollars in 2015 to establish a low-voltage electric motor production base and local supply chain. With the construction of the new high-voltage electric motor factory, the company will be able to expand its electric motor business portfolio.

High-voltage electric motors, which operate at voltages above 1,000V, are used in large industrial facilities such as power plants and manufacturing plants. Recently, as industrial electricity demand has increased, demand for high-efficiency, high-voltage electric motors has also grown. Their importance is expected to further increase in the future, especially for data center cooling systems and renewable energy connection facilities.

According to market research firm Omdia, the global high-voltage electric motor market is projected to grow at an average annual rate of over 5%, reaching approximately 6.5 billion dollars by 2028.

Since entering Vietnam in 2008, Hyosung has invested about 4 billion dollars across all business sectors, establishing six production bases throughout the country: in the southern regions (Dong Nai Province, Ba Ria–Vung Tau Province), the central region (Quang Nam Province), and the north (Bac Ninh Province). The company currently employs more than 10,000 local staff members, making it the third largest Korean investor in Vietnam.

Hyosung Chairman Cho Hyunjoon stated, "This agreement marks Hyosung's expansion from textiles into the heavy industries sector in Vietnam. Moving forward, we will continue to grow as a global partner together with Vietnam."

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