LG to double factory capacity in Hai Phong

Mr. Jeong Cheol-dong, CEO of LG Display, said the above information when meeting with Prime Minister Pham Minh Chinh on the morning of July 3, in Seoul, South Korea.

According to Mr. Jeong Cheol-dong, Vietnam is a key global production location for LG, with a disbursed capital of over 5 billion USD. Last year, the group poured an additional 1 billion USD to increase production of electronic components and smartphone camera modules at the LG Innotek factory in Hai Phong. Mr. Jeong said that once completed, this factory will double its production capacity.

“We want to have enough electricity for production and high-quality personnel to work at the factories,” he said.

Electronics component maker LG Innotek (a member of LG Group) is a major manufacturer of smartphone camera modules. The company also has camera module manufacturing facilities in Paju and Gumi, South Korea. The Hai Phong plant, which began operations in 2020, produces about 390 million camera modules per year.

Prime Minister Pham Minh Chinh welcomed and highly appreciated LG’s investment and business efficiency in Vietnam. He suggested that the group increase the localization rate and facilitate Vietnamese enterprises to participate in their supply and production chains.

“LG is requested to build more research and development centers, considering Vietnam an important base in its global production strategy,” said the Prime Minister.

The Government leader said that the agencies are developing a Decree on the establishment, management and use of the Investment Support Fund to ensure the stability, competitiveness and attractiveness of Vietnam’s investment environment. Vietnam will create the best conditions to provide sufficient electricity, quality human resources and smooth infrastructure for LG’s project.

The South Korean electronics company had revenue of about $137 billion last year, with a total workforce of about 270,000 people worldwide.

In Vietnam, LG’s total registered investment capital is over 8 billion USD, with revenue in 2023 of nearly 14 billion USD. The company has 3 large factories in Hai Phong, and operates R&D centers in Hanoi and Da Nang with more than 1,000 employees.

On the same morning, the Prime Minister also received leaders of CJ, Posco, Daewoo E&C, GS Engineering & Construction Corp, Celltrion and the Korea Development Bank KDB.

Chairman and CEO of Posco Group Chang In Hwa proposed that the Government and relevant agencies support the group to invest in an LNG power plant in Nghe An province.

Mr. Sohn Kyung Sik, Chairman of CJ Group (a leading enterprise in food, biotechnology, retail, and culture) said that the group will expand infrastructure projects and invest in more cinemas to contribute to the development of Vietnam’s cultural industry.

Meanwhile, Chairman of GS Engineering & Construction Corp (GS E&C) Huh Yoon Hong proposed to be supported to develop the project in Nha Be district, Ho Chi Minh City into a smart urban area, applying high technology – a place to attract semiconductor design enterprises and startups.

The Government leader requested that corporations make specific proposals to Vietnamese ministries and branches for consideration and resolution to ensure mutual benefit.

Prime Minister Pham Minh Chinh and his wife are visiting South Korea from June 30 to July 3. This is the first official visit to South Korea by a senior Vietnamese leader since the two countries upgraded their relationship to a Comprehensive Strategic Partnership in December 2022.