The factory is expected to produce US$40 million worth of snacks a year once completed in October 2006.
"The Vietnam factory will serve as a hub for exporting our products to nations in Southeast Asia and the Middle East," a company official told the Yonhap news agency. "We plan to invest $45 million over the next three to four years."
The plant will product Orion's flagship product, Choco Pie, a chocolate-covered marshmallow pie that has a 60 per cent share of Vietnam's pie market, with an annual revenue of $7 million.
Orion opened a Vietnamese subsidiary, Orion Food Vina, in October and also has four subsidiaries in China and Russia.
Formerly Tong Yang Confectionery, Orion is a holding company that also owns activities in the hospitality, retail and entertainment sectors.