The US$40 million plant, based in the southern province of Binh Duong, will produce the group's famous 'Chocopie', as well as other cakes, potato chips, snacks and chewing gum.
Orion launched its business in Vietnam by founding a local subsidiary, Orion Food Vina, in October last year. Since then, its Chocopie and Custas cakes have become popular, helping the group win 60 per cent of the country's cake market, and US$7 million in sales.
Vietnam's confectionery market is seeing double-digit growth, with an estimated 36,000 tonnes produced in 2005, according to Euromonitor. This growth has also attracted the global confectionery leader, Cadbury Schweppes, which signed a distribution agreement with domestic producer Kinh Doh in October.
A major rival to Orion, Kinh Do is also building a snack factory in the province of Binh Duong.
Orion's plant, its sixth outside South Korea, will in addition become a major production centre for the company in the surrounding area.
"The new factory will serve as an outpost for the group to pursue further market penetration not only in Vietnam but in south-east Asia, India and China as well," a company spokeswoman told AP-Foodtechnology.com.
It is expected to produce 14,000 cans of products daily, generating an estimated value of US$53 million annually.
