POSCO Group is accelerating its strategy to transform Vietnam from a simple labor-intensive production base into a high-value manufacturing hub that directly produces core materials. Chairman Jang In-hwa's visit to Vietnam next week to inspect operations on site is seen as part of this strategic initiative. Having positioned steel and secondary battery materials as the group's core pillars while pushing to expand overseas bases, the visit reflects his commitment to personally oversee Vietnam, one of the company's key markets.
POSCO Group's business history in Vietnam spans over 30 years. Starting with the establishment of a Hanoi office in 1991, before Korea-Vietnam diplomatic relations were established, the company set up its first joint venture in Ho Chi Minh City the following year. Since then, it has steadily expanded its presence across steel production, trade, and logistics. Recently, logistics subsidiary POSCO Flow established a Vietnamese subsidiary, building an advanced supply chain management system that integrates everything from raw material intake to product shipment.
While POSCO has traditionally focused on steel production and related logistics, the company has recently accelerated efforts to transform Vietnam into a high-value manufacturing base. A prime example is POSCO Future M's first overseas anode material plant. According to industry sources and local media, POSCO Future M recently signed a formal contract with Viglacera, Vietnam's largest construction and real estate company, to build a factory in the Song Cong 2 Industrial Park in Thai Nguyen Province.
The plant, with total investment exceeding $400 million (approximately 600 billion won), will be built on a 37-hectare site. Construction is scheduled to begin in the second half of this year with operations targeted for 2028. Upon completion, the facility will have annual production capacity of 55,000 tons, with materials produced there to be supplied to major global electric vehicle manufacturers in Korea, the United States, and the European Union.
While POSCO Future M initially announced an investment of 357 billion won, Viglacera cited a figure of $400 million (approximately 600 billion won). The higher figure reportedly reflects additional plans and suggests positive momentum from both sides regarding future investment expansion.
Vietnamese local media have described the investment as "symbolizing a qualitative shift in foreign direct investment (FDI)." This signifies that Vietnam's manufacturing sector, previously characterized by low-wage assembly operations, is transforming into an advanced base that directly produces core battery materials. The annual production capacity of 55,000 tons is expected to play a decisive role in establishing Vietnam as a major player in the global battery supply chain. This is particularly notable as it contrasts with POSCO Group's reduction of its China operations.
POSCO is not alone in making strategic investments in Vietnam. Along with the United States and China, Vietnam is one of Korea's major trading partners and has already become a key base for major Korean conglomerates. Samsung Electronics operates six manufacturing plants, one R&D center, and one sales subsidiary in Vietnam, and is currently pursuing construction of a Samsung Innovation Campus (SIC) research facility in Thai Nguyen Province.
LG Group operates its Haiphong cluster as a core base for three electronics affiliates, while SK Innovation is expanding into energy infrastructure including LNG terminals and offshore wind power. POSCO Group is also exploring opportunities to develop local energy businesses, including LNG supply, through POSCO International. An industry official explained that Vietnam "is shifting from its image as a low-cost labor assembly base to a strategic stronghold encompassing advanced manufacturing and energy and materials production."
Attention is also focused on an economic delegation comprising Chairman Jang and major business leaders visiting Vietnam amid political changes in the country. Vietnamese Communist Party General Secretary To Lam, the country's top-ranked leader, was recently elected as State President, consolidating both party and state power.
The economic delegation, led by Samsung Electronics Executive Chairman Jay Y. Lee and including SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chairman Chung Euisun, and LG Group Chairman Koo Kwang-mo, will make the first large-scale visit since Vietnam's effective "one-man system" was completed. Business circles expect major investments or cooperation projects to be announced. With relationship-building more important than ever following the launch of Vietnam's new system, Chairman Jang's visit is expected to be a strategic trip that goes beyond simple business inspection to include additional investments and large-scale project development.