Samsung Eng. to invest in Vietnam for SE Asia water biz

Samsung Engineering Co. agreed to spend $41 million on Vietnam’s largest private water treatment company for the eco-friendly business in Southeast Asia.

The South Korean engineering company said on Thursday it has signed a deal to buy a 24% stake in DNP Water, becoming the No. 2 shareholder of the company after its parent DNP Holdings.

The investment will allow Samsung to work on both water and sewage businesses in Vietnam since it has already made inroads into the country’s industrial wastewater sector. Samsung aims to make Vietnam a base for its water treatment business in Southeast Asia.

“The environmental business is becoming the company’s future growth engine,” said a Samsung official. “A success in the eco-friendly business in Vietnam will speed up our entry into the Southeast Asian market.”

The private sector has been taking the initiative from governments in Southeast Asia’s water treatment industry, according to Samsung.

Vietnam’s water treatment market was known to have strong growth potential as the country’s water supply infrastructure remains insufficient, industry sources said.

DNP Water, separated in 2017 from a plastic pipe maker DNP Group, has been expanding its business by purchasing Vietnam’s water supply assets from the government, according to Samsung.

Write to Ik-Hwan Kim at lovepen@hankyung.com
Jongwoo Cheon edited this article.