[Edaily Reporter kim mi-kyung ] SamyangFoods is investing a total of 218.6 billion won to build a production plant in Vietnam. The company plans to first install one dried noodle production line at the facility—which can accommodate up to eight production lines—and will determine plans for additional equipment based on future demand. The company envisions using Vietnam as a production hub to serve the European and ASEAN markets.

SamyangFoods(003230)On the 11th, the company announced that it held a board of directors meeting and decided to make a cash investment of 131.13124 billion won in the newly established “SamyangFoods Bac Ninh Co., Ltd.” (tentative name) in Vietnam. This amount represents 10.3% of the company’s consolidated equity as of the end of last year, and SamyangFoods will hold a 100% stake in the new entity. The total project cost for establishing the local plant is 218.6 billion won.

The company stated, “This announcement pertains to SamyangFoods’ 131.1 billion won cash investment in a wholly-owned local production subsidiary in Vietnam and the establishment of a production plant in Vietnam with a total investment of 218.6 billion won.”

The factory is scheduled to be completed on January 31, 2029. SamyangFoods plans to make installment payments of the capital contribution to the local subsidiary by that date.

The newly established subsidiary will construct the production plant in Thuan Thanh, Vietnam. The announced estimated investment of 218.6 billion won includes the costs of purchasing the land, constructing the plant, and installing one dried noodle production line. The investment amount and schedule are subject to change depending on the exchange rate at the time of actual payment and local licensing and registration procedures.

SamyangFoods plans to designate production hubs by region to reduce the risk of geopolitical variables, logistics disruptions, and tariff burdens being concentrated in a single area, while also responding to increasing demand in each market.

A SamyangFoods official stated, “The region offers excellent competitiveness in manufacturing costs (including potential savings on raw material procurement costs, such as wheat flour and palm oil, as well as labor costs) and is advantageous for simultaneously targeting key markets in Europe and ASEAN from a logistics and customs perspective.” The official added, “We also took into account the fact that, compared to the U.S. or Europe, we can shorten the time required for construction permits and the construction period, as well as reduce the burden of facility investment and operating costs.”