Hyosung Group to Invest KRW 1.3413 Trillion in Bio-BDO Plant in Ho Chi Minh City, Calls for Highest-Level Investment Incentives

【Hanoi, Vietnam—Kim Jun-seok, Special Correspondent】Hyosung Group has formally asked the Ho Chi Minh City government in Vietnam to provide dedicated administrative support and apply the highest level of investment incentives to a bio-BDO production plant project worth $1 billion (about KRW 1.3413 trillion).
According to local media on the 6th, a Hyosung Group delegation in Vietnam attended the “2026 Dialogue between Ho Chi Minh City and Korean Businesses,” held in Ho Chi Minh City on the 5th, and proposed policy support measures for the bio-BDO plant.
The company said the bio-BDO plant, located in Phu My II Industrial Park in Ho Chi Minh City, will start with annual capacity of 50,000 tons and be expanded in stages in response to market demand. Total investment will amount to about $1 billion (about KRW 1.3413 trillion). The project will use advanced biotechnology that relies on sugars extracted from sugarcane rather than petroleum-based feedstocks, enabling it to reduce carbon emissions by at least 80% compared with existing methods. The bio-BDO produced will be supplied as a key raw material for biodegradable plastics, high-performance fibers, cosmetics and other products.
A Hyosung Group official stressed that “because biotechnology is a new industry, the relevant legal procedures and policy framework in Vietnam are still being put in place, making support from local governments necessary to move the project forward,” and presented two specific proposals.
Hyosung Group asked Ho Chi Minh City to designate a dedicated administrative contact point exclusively for the bio-BDO project, expedite support for the various licensing procedures and investment incentive applications, and work with relevant Vietnamese ministries and agencies to resolve issues that arise as the project proceeds.
It also proposed applying the highest level of tax benefits and investment incentives. Hyosung Group said, “This project falls under the high-tech sector as defined by Vietnam’s Law on High Technology, revised in 2025.” It explained that “because of the nature of the bio business, the initial R&D costs and infrastructure investment burden are substantial, and developing the market takes a long time, making it difficult to immediately meet current investment incentive requirements, such as thresholds for initial sales and investment disbursement.” Accordingly, it proposed adding bio-BDO and industrial biotechnology to Vietnam’s list of strategic technologies and granting them the highest level of incentives.
Hyosung Group said it hopes the successful completion of the bio-BDO project will help Ho Chi Minh City develop into a key hub for the bio industry not only in Vietnam but also in Southeast Asia.
Hyosung Group first entered Vietnam in 2007 and has since operated facilities in Ho Chi Minh City, Đồng Nai Province, Bac Ninh and other locations for textiles, chemicals, industrial machinery, ATMs and LPG distribution. In recent years, it has diversified its business into areas including biotechnology, renewable energy and real estate. As of 2025, Hyosung Group’s cumulative investment in Vietnam stood at about $5 billion (about KRW 6.7065 trillion), while its annual sales were around $3 billion (about KRW 4.0239 trillion).
[email protected] Kim Jun-seok Reporter