Dongwha Enterprise, one of South Korea’s best wood materials manufacturer, began construction of its very first independent production facility in Hanoi, Vietnam.
The manufacturing plant, which is located in Thai Nguyen Province near the capital city of Hanoi, will mainly manufacture laminated flooring and medium-density fiberboard (MDF) that is used to make furniture.
An overall sum of 180 billion won (US$ 145 million) has been put into the plant which covers 50,000 square meters.
Dongwha Enterprise hopes to complete construction of the manufacturing plants for laminate flooring and medium-density fiberboard in April and August of 2021, respectively. The wood material firm aims to make 370,000 cubic meters of medium-density fiberboard and 3.62 million square meters of laminate floor annually. When the construction of Dongwha Enterprise’s production facility is accomplished, it is expected to produce a total of 1.07 million cubic meters of MDF in cooperation with VRG Dongwha in Ho Chi Minh City, a joint venture between Dongwha International and the Vietnam Rubber Group (VRG).
VRG is a state-own conglomerate mostly known for its leading role in Vietnam’s rubber plantation and processing industry in Binh Phuoc. Dongwha established a joint venture with Vietnam Rubber Group in 2008 and entered the Vietnamese medium-density fiberboard market. It is currently taking up 40 percent of the MDF market in southern Vietnam and continues to grow at a fast pace. This will establish Dongwha’s presence as a dominant player in the competition that is the MDF manufacturing market in Vietnam.
The construction business boom in northern Vietnam is also a favourable factor for Dongwha. Currently, Hanoi is actively carrying out a large-scale city development project in its northern areas and this will result in growth potential for the construction materials market including MDF. “Through the construction of our plant near Hanoi, we will take occupation of the MDF and laminate floor markets in the north while solidifying our status as a leading player in the wood board and construction material sectors here,” stated Kim Myung-sik, the general manager of Dongwha Vietnam. Based on its 10-year relationship with the Vietnamese government, Dongwha Enterprise earned the approval to build an independent production facility line in Hanoi in July, 2019.
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