Daesang expands food production capacity

Vietnam is a key market for Daesang's global business, as the company posted sales surpassing ₩200 billion won ($145 million) last year by combining its food and ingredient businesses. The figure was nearly double the figure from 2017, with the growth attributed to the growing consumer demand driven by the K-food wave.

As reported by Korea IT Times, Daesang has made an investment of ₩30 billion ($22 million) into two factories in Hai Duong and Hung Yen provinces, being respectively run by the company's subsidiaries, Daesang Vietnam and Daesang Duc Viet.

Daesang Vietnam has upgraded the annual output capacity of the Hai Duong factory by 40 per cent with an expanded seaweed line and a new ambient-ready meal manufacturing line.

Meanwhile, Daesang Duc Viet's factory in Hung Yen has more than doubled its annual output capacity. Alongside the existing meat processing products, the company will produce its kimchi products and convenience foods such as spring rolls and steamed pork buns, also knowns as 'banh bao'. Daesang's flagship product, Jongga Kimchi, will be produced by a new production line at the factory.

By increasing kimchi production locally, Daesang aims to expand its market share in Vietnam. In addition, the company also has a plan to secure a stronger presence in Vietnam's ready-meal market with its O'food brand.

Daesang first entered Vietnam in 1994 by establishing its local subsidiary, Miwon Vietnam Co., Ltd. In 1995, the South Korean food maker began the production and sales of Miwon fermented seasoning by establishing a factory near Hanoi. It acquired the local meat processing company Duc Viet Foods in 2016.

Source: Vietnam Investment Review