POSCO E&C uses Vietnam as springboard for its Southeast Asian business

POSCO E&C’s Hanoi construction master plan will develop and expand the boundaries of the overpopulated capital by 2050. / Courtesy of POSCO E&C

By Park Jin-hai

Hwang Tae-hyun CEO of POSCO E&C.

POSCO E&C, an affiliate of the country’s No. 1 steel maker POSCO, which specializes in plant building and urban development, has marked two decades of business in Vietnam.

The construction firm has built two landmark structures there since 1995 ­ the Diamond Plaza complex, its first luxury shopping center in Ho Chi Minh city, and the Poslilama Steel Plant in Long Than, 60 kilometers from the capital.

“Over the last five years, Vietnam has emerged as one of the most attractive destinations in Southeast Asia. The country was bustling with fresh construction projects in the civil sector, infrastructure, roads and bridges, urban development, and industry and energy,” said a spokesman for the company.

As the builder of POSCO steel plants, with accumulated expertise and experience, it has clinched successive construction contracts in the Southeast Asian country.

The company made a joint venture with a local firm Vinaconex in 2006 and carried out the An Khanh New City Development project to develop Splendora, west of Hanoi. The area is now regarded as a model of urban development incorporating aesthetics into the city’s landscape as well as improving standards of living.

“At present, our projects carried out overseas and within Korea are 50:50. But we intend to raise the ratio up to 70 percent in the near future,” the spokesman added.

In 2011, after two years of research, it was given the right by the Vietnamese government to develop and expand boundaries of the over-populated Hanoi area from 921 km2 to 3,300 km2 by 2050. It has been also engaged in various projects to improve the country’s infrastructure such as the 80 kilometer Noi Bai­Laao Cai highway project, the Long Thanh-DauGiay Expressway and the Hanoi Light Metro Line.

Mindful of the country’s significance in the Southeast Asian region, it has established its Southeast Asia Business Unit to carry out and oversee all its construction projects in the area.

Hwang Tae Hyun, newly appointed CEO of POSCO E&C, visited Vietnam in May and stressed that the firm is not just chasing profits but rather a long-standing partnership and cooperation with Vietnam.

“During operations in Vietnam, our long-term goal is not only profits, but also to become an admired company. To achieve that goal, beside a comprehensive development policy, the company has positively participated in the process of improving infrastructure quality, and promoting industrialization, modernization and urbanization of the country,” he said.