South Korean conglomerate SK Group has acquired Vietnamese semiconductor manufacturing and trading company ISCVina Manufacturing Co Ltd for $300 million.
The acquisition was disclosed during a meeting between Tran Duy Dong, Chairman of the Vinh Phuc People’s Committee; and Hang Sung Won, manager of SK Group in Vietnam.
ISCVina Manufacturing, operating in Ba Thien 2 Industrial Park, was fully invested by another South Korean firm, ISC Co Ltd, the world’s No. 1 producer of semiconductor test sockets.
The deal is not the first for SK Group in Vietnam. The company injected $470 million for a 9.5% stake in conglomerate Masan Group in 2018 and led a consortium to invest $1 billion in Vingroup a year later.
It also invested about $100 million in Pharmacity Pharmaceutical Joint Stock Company in 2022 and is on the list of shareholders of PetroVietnam Oil Corporation.
SK Group’s Won highlighted the supportive business policies in Vietnam but noted challenges in scaling up investment and recruiting skilled workers for ISCVina Manufacturing.
He proposed that Vinh Phuc province facilitates the recruitment of workers for the firm and creates research opportunities to expand investment in the locality.
According to reports, Vinh Phuc is prioritising attracting investments in the fields of high-tech industry, semiconductor industry, electricity, electronics, industrial park infrastructure, urban infrastructure, commercial centres, hotels, housing, and service tourism, among others.
SK Group is the second-largest conglomerate in terms of revenue in South Korea, next only to Samsung Group. Through a number of subsidiaries, it is engaged in various businesses, including the manufacture of chemicals and petrochemicals, semiconductors, and flash memory, among others.
In June, the Maeil Business Newspaper reported that SK Group was in the process of exiting its investments in Vingroup and Masan Group. The media outlet said that SK is looking to secure more than 1 trillion won ($720 million) from the share disposals.