Hitejinro to construct first overseas beverage plant in Vietnam

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Hitejinro to construct first overseas beverage plant in Vietnam

Published: 16 Oct. 2023, 17:51 Updated: 16 Oct. 2023, 18:52

SEO JI-EUN
seo.jieun1@joongang.co.kr

Hitejinro signed a basic land lease contract in Thai Binh Province, Vietnam, last Friday for the establishment of its inaugural overseas production facility. The event was attended by Hitejinro President Kim In-kyu and Hitejinro Singapore President Hwang Jung-ho. [HITEJINRO]

Hitejinro, the Seoul-based producer of the “Jinro” soju brand, will construct its first-ever overseas alcoholic beverage production plant in Vietnam, buoyed by solid demand for soju.

Hitejinro's Singapore subsidiary inked a contract last Friday with the operator of the “Green i-Park Industrial Complex,” a planned site for the factory, located in the Thai Binh Economic Zone in Vietnam. The complex, covering 5.88 million square meters (1,452 acres), is set to host multinational corporations including ones from Korea, the United States and Taiwan. The factory's exact size and construction timeline have yet to be finalized.

The decision to establish a soju plant in Vietnam comes on the heels of the growing global demand for the Korean liquor.

“Over the past six years, Hitejinro's soju exports have witnessed an annual increase of approximately 15 percent,” the company explained in a statement Monday. “We project that our overseas soju sales will grow more than threefold compared to 2022 within the next decade.”

The building of a new production facility outside of its home country will not only serve to bolster Hitejinro's cost competitiveness in low labor costs but also facilitate the adaptation of various packaging options, sizes, and containers tailored to specific country markets, the company added.

Vietnam's strategic geographical location and logistical accessibility were also cited as the reason for choosing it as the location of Hitejinro's first overseas production facility. Of particular note is the Thai Binh Province, situated in northern Vietnam, which boasts proximity to the capital, Hanoi. It also has well-developed infrastructure, encompassing international airports, ports, and coastal roads.

Hitejinro established a subsidiary in Singapore in September to target the Southeast Asian market.

“The Singapore production subsidiary has signed a preliminary agreement, and in the future, once our Vietnam sales subsidiary meets the production requirements, they plan to formalize the main contract,” a company spokesperson said.

“This facility will play a pivotal role in Jinro soju's globalization strategy,” said Hwang Jung-ho, the president of Hitejinro Singapore.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]