Kumho Tire: Business Integrated with Community Responsibility

Kumho Tire is one of 10 leading tire manufacturers in the world. Kumho Tires Binh Duong is a major modern tire production plant invested by Kumho Group in 2008. After nearly 10 years of development, Kumho Vietnam has actively contributed to Vietnam's economic development in general and to Binh Duong province in particular. Vietnam Business Forum Magazine has an interview with Mr Kang Young Kyu, Deputy General Director of Kumho Tire Vietnam Co., Ltd. Quoc Hung reports.

Could you briefly introduce Kumho Tire factory in Binh Duong province?
The Kumho Tire factory in Binh Duong province was built in 2008 on an area of 315,000 square metres with an annual production capacity of over 4 million tires. This facility has played an important part in carrying out the global strategy of Kumho Tire and is a supply base for Southeast Asia. The plant now has nearly 2000 employees.
With a yearly output of more than 4 million tires, of which 90 per cent of the output in Vietnam is exported to markets such as the United States, Australia, South America, Central America and Southeast Asia, Kumho Vietnam accounts for 40 per cent of Vietnam’s total automobile tire export output.

How has Kumho Tire Binh Duong factory technologically invested?
With a total investment capital of US$200 million, Kumho Tire plant was a major investment project in 2008. As the first round tire production facility of Kumho Tire in Vietnam, it was equipped with advanced equipment to turn out PCR tires for sedans and LTR for light trucks. With existing resources, human resources and latex supply in Vietnam, the Kumho Tire plant took the lead in the group’s production globalisation.

Vietnam is a potential market but Kumho Tire’s export share accounts for 90 per cent. Does the company have any development strategy to increase the chance of using high-quality products in the coming time?
With more than 90 million people and a rapidly developing economy, Vietnam is a potential market for the automotive industry in general and the automotive component sector in particular. The investment in the tire production plant in 2008 was also for this purpose. With its quality advantage, technology and brand name, Kumho Tire has gained the trust of Vietnamese consumers. This will be an important platform for us to develop and expand our market share to take the lead in the global market in general and in Vietnam in particular.

In Binh Duong province, in addition to business performance, how has Kumho Tire focused on social activities?
Apart from production and business operations, Kumho Tire always has the sense of responsibility to society and community. In addition to creating jobs with stable pay for nearly 2,000 workers and paying a handsome sum of money to the State Budget a year, the company has launched a lot of pro-community activities in Binh Duong province in particular and in Vietnam at large. The company has regularly participated in social programmes launched and funded by the province such as building charity houses and savings accounts for people with recognised contribution and sacrifice in the province. In 2015 alone, the company donated US$30,000 (VND640 million) to charity.

As an investor, how do you assess the investment environment in Binh Duong province?
The investment environment in Binh Duong province is very good. The local government is very friendly and supportive to businesses. The transport infrastructure is quite favourable, but quality needs to be further enhanced to support service development in addition to existing industrial development. We hope that the Binh Duong government will continue to create favourable conditions for enterprises to develop investment and business to contribute more to local socioeconomic development.