LG Innotek, a subsidiary of the LG Group, is expanding its investment in Vietnam to double its production capacity at its factory in Hai Phong. This move comes after the company received praise from Prime Minister Pham Minh Chinh for its business efficiency and commitment to localization. During a meeting with the Prime Minister, LG CEO Jeong Cheol-dong announced the plans to increase production of electronic components and smartphone camera modules at the plant, with an additional 1 billion USD invested last year.
The Hai Phong plant has been operational since 2020 and currently produces approximately 390 million camera modules per year. However, with this new investment, the company aims to double its production capacity upon completion. The expansion will also create a closed production complex at the plant.
The Prime Minister praised LG’s investment in Vietnam and encouraged further collaboration with Vietnamese enterprises in their supply and production chains. He suggested increasing the localization rate to benefit both companies and promote economic growth in Vietnam.
During the meeting, leaders from other South Korean companies such as CJ, Posco, Daewoo E&C, GS Engineering & Construction Corp, Celltrion, and KDB also discussed proposals for further investments in LNG power plants, infrastructure projects, smart urban areas, and more. The Prime Minister emphasized the importance of specific proposals and collaboration with Vietnamese ministries and branches to ensure mutual benefit.
Overall, LG has a significant presence in Vietnam with total registered investment capital exceeding 8 billion USD. The company had revenue of about $137 billion last year and operates three large factories in Hai Phong with R&D centers in Hanoi and Da Nang. The visit of Prime Minister Pham Minh Chinh to South Korea marks the first official visit by a senior Vietnamese leader since the countries upgraded their relationship to a Comprehensive Strategic Partnership in December 2022.
