Annual Production Capacity Expanded Up to Twice
Expecting Expansion of K-Food Range Including Kimchi, Gim, and Ready Meals
Daesang is adding two new factories in Vietnam and expanding the scope of K-food products such as kimchi, gim (seaweed), and convenience foods.
Daesang announced on the 3rd that its subsidiaries Daesang Vietnam and Daesang Deukviet have each completed their second factories in Hai Duong Province and Hung Yen Province in northern Vietnam. A total of 30 billion KRW was invested in building these new factories.
Daesang Vietnam expanded the annual production capacity (CAPA) of the Hai Duong factory by 40% compared to before. It expanded the gim production line, which holds the number one market share locally, and newly established a room-temperature convenience food manufacturing line with high growth potential.
Daesang Deukviet's Hung Yen factory also more than doubled its annual production capacity (CAPA) through this expansion. The existing factory produced meat products such as room-temperature sausages and frozen balls, while the new factory plans to produce convenience food products with high demand in Vietnam, such as spring rolls and banh bao. A kimchi production line was also newly established.
Vietnam is a key country in Daesang's global business, recording sales of over 200 billion KRW last year combining food and materials businesses. This figure nearly doubled compared to 2017. Local experts analyze that consumer demand has increased thanks to the recent K-food craze. The expected local sales this year are 250 billion KRW.
The gim produced by Daesang's global food brand 'O'Food' has taken the lead with a market share exceeding 50%. Convenience-type kimchi seasoning that allows consumers to make kimchi using local vegetables, as well as K-snacks such as convenience tteokbokki and hot dogs, are also gaining popularity.
Daesang plans to expand its market share through local production of Jongga kimchi in Vietnam and strengthen its position in the convenience food market by leading with the global food brand O'Food.
Lee Kyung-ae, head of Daesang's Food Global BU, said, "With the expansion of the Hai Duong and Hung Yen factories, which are core to our global food business, production capacity has been significantly strengthened, so we expect to accelerate the expansion of the Vietnamese market. We will grow into a representative comprehensive food company in Vietnam by offering high-quality products that pay attention to hygiene and consumer safety through Daesang's food manufacturing know-how and modern production facilities."
Meanwhile, Daesang officially entered the Vietnamese market in 1994 by establishing its local corporation Miwon Vietnam. In September 2016, it also entered the meat processing market by acquiring the local Vietnamese meat processing company Deukviet Food.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
