Hitejinro's first overseas factory to produce fruit soju for 86 countries

Industry

Published: 19 Jun. 2024, 17:54 Updated: 19 Jun. 2024, 18:41

Hitejinro's first overseas factory to produce fruit soju for 86 countries

Pictured is Hitejinro's inaugural overseas factory, situated in the Green iP-1 Industrial Park within Vietnam's Thai Binh Economic Zone, filmed during a press tour on June 10. The facility currently awaits permits for construction aspects like firefighting and disaster prevention. Groundbreaking is slated to begin in the first quarter of the upcoming year. [SEO JI-EUN]

HANOI, Vietnam — A two-hour drive from Vietnam's capital city of Hanoi, in the Thai Binh Economic Zone, lies a sprawling construction site.

Marked by puddles from recent rain and red boundary flags scattered across the mud, this site is set to become Hitejinro’s first overseas soju factory. With an $77 million investment, the company plans to start construction in early 2025 and begin producing fruit soju by mid-2026, which will be distributed in more than 86 countries, including Japan, China and the United States as well as Vietnam.

Vietnam was an obvious choice for the factory's home — the nation is already a hub for numerous Korean companies due to its young work force, low labor costs and affordable rent. Hitejinro also hopes to capitalize on the nation's trade agreements with other Asean countries, also among the company's main strategic markets.

The new Vietnamese factory will cover 82,083 square meters (883,534 square feet), equivalent to 11 soccer fields. Initially, it will feature one production line with an annual output goal of about 1 million cases, or some 30 million bottles, of fruit soju, accounting for about 17 percent of Hitejinro’s total overseas sales target for this year. The company aims to establish the factory as a central hub for the Southeast Asian market.

Jung Sung-whon, general director of Jinro Soju Vietnam, speaks during a media tour of Hitejinro's inaugural overseas factory site in Vietnam on June 10. [SEO JI-EUN]

“Approximately 80 to 90 percent of the production will be exported, with the remaining 10 to 20 percent supplied to the local Vietnamese market,” said Jung Sung-whon, general director of Jinro Soju Vietnam, during a media tour of the site on June 10. “We plan to start with one line and potentially expand to two or three additional lines.”

Hitejinro chose Thai Binh in Vietnam mainly for its proximity to Hanoi, which provides easy access to international airports, ports and coastal roads.

A render of Hitejinro's upcoming factory in Vietnam [SEO JI-EUN]

Green iP-1 Industrial Park, within the economic zone, offers incentives to businesses, including exemptions from corporate and land taxes. Thai Binh Province plans to grant a four-year corporate tax exemption to its investing companies like Hitejinro, followed by a 50 percent tax reduction for the next nine years and a preferential 10 percent corporate tax rate for two additional years. There will be no land taxes for the first 15 years.

“We are delighted that Hitejinro, one of Korea’s largest liquor producers, has chosen our Green i-Park to build its soju factory,” said Nguyen Minh Hung, president of Green i-Park Corporation, during a presentation at the industrial park. “This decision reflects the quality of our industrial zone services and the trust Korean investors have in the Vietnamese business environment. We wish for the successful operation of the soju factory project in Thai Binh and that soju products made here will be exported to countries around the world.”

A scale model showcases the prospective site for Hitejinro's overseas factory in the Green iP-1 Industrial Park in the Thai Binh Economic Zone. The highlighted area indicates the planned location for the new facility. [SEO JI-EUN]

That the Vietnam factory may be Hitejinro’s first overseas production site in its 100-year history, but the company doesn't intend for it to be the last.

“We intend to build a factory with standardized systems that can be copied-and-pasted if we build additional factories overseas or domestically,” said Jung. “It will be more than just a production site; it will be an ideal facility in terms of operations, logistics, quality control and production, showcasing Hitejinro’s 100-year legacy and excellence to consumers.”

Hitejinro plans to implement high-tech equipment, advanced water treatment systems and facilities that meet domestic Hazard Analysis and Critical Control Points standards. The factory will also be equipped to produce custom products tailored to the specific packaging and capacity requirements of major soju export markets.

The factory’s exterior will feature symbols representing the company’s identity, including the company's logo and its mascot, Toad. The inside will feature an exhibition hall where consumers and visitors can learn about the company’s history and products.

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