Food
Orion, Daesang and CJ scale up production in Vietnam — the supply-chain opening from K-food localization
After Orion posted KRW 475.5 billion in Vietnam revenue in 2023, Daesang, Paldo, Ottogi and CJ CheilJedang are expanding local factories. As they localize production to capture K-food demand, downstream supply — ingredients, equipment, logistics — opens up for Korean SMEs.
Key conclusions
- 1Orion posted KRW 475.5 billion in Vietnam revenue in 2023 — the largest, with more plants under construction
- 2Daesang, Paldo, Ottogi and CJ CheilJedang expand simultaneously — K-food local production in earnest
- 3Daesang's O'Food holds over 50% of Vietnam's seaweed market
Impact on Korean companies — Expanded local production grows downstream demand for ingredients, equipment, packaging and cold chain, while intensifying competition among Korean brands and with local brands.
Contents
What happened
Korean food majors are rapidly adding local production capacity in Vietnam, judging it an attractive market thanks to young consumers who readily try foreign foods. Orion leads in scale, posting KRW 475.5 billion in Vietnam revenue in 2023 and building more capacity.
Daesang invested KRW 30 billion in June 2024 into two plants in Hai Duong and Hung Yen, aiming to double total capacity, expanding its Jongga (kimchi) and O'Food (seaweed) lines; O'Food holds more than 50% of Vietnam's seaweed market. Daesang's Vietnam revenue doubled over five years to KRW 201.6 billion in 2023.
Paldo, Ottogi and CJ join in
Paldo completed a second instant-noodle plant in Tay Ninh, optimizing nationwide logistics alongside its northern plant. Ottogi plans further expansion and runs two plants in Bac Ninh and Binh Duong. CJ CheilJedang built an integrated plant in Long An for KRW 30 billion in 2022 and plans an additional KRW 100 billion in 2025.
Why local production
Local production cuts tariffs and logistics costs and improves access for fresh and chilled products — supported by Vietnam's young consumers and K-food's popularity.
What it means for Korean companies
The majors' expansion grows demand for downstream supply — ingredients, equipment, packaging and cold chain — opening contract-manufacturing, co-entry and supply opportunities for Korean food SMEs. But local production also erodes straight finished-goods exports and intensifies competition, and firms must prepare for local food-safety and certification requirements.
Opportunities
- Downstream supply of ingredients, equipment, packaging and logistics (cold chain) as majors expand
- Contract manufacturing and co-entry for Korean food SMEs using local production bases
- K-food distribution and marketing partnerships
Risks
- Local production may erode straight finished-goods exports
- Local food-safety and certification requirements (including halal for ASEAN expansion) must be addressed
Recommended actions
- Map the expansion plans and partner needs of established majors such as Orion, Daesang and CJ
- Identify entry points in downstream supply — ingredients, equipment, packaging
- Research local food certification and distribution channel structures in advance
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Sources & methodology
This content is reference material reconstructed from public reporting and institutional information for a Korean-business audience; it is not investment or legal advice. Please verify through official channels such as KOTRA before making decisions.
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