LG doubles commitment in Haiphong
LG doubles commitment in Haiphong
On April 5, the Haiphong People’s Committee and LG Electronics Group (LG) signed a Memorandum of Understanding (MOU) for the latter to implement a high-tech screen (OLED) production facility worth $1.5 billion.
It is the second $1.5 billion project of LG in the northern port city’s Trang Due Industrial Park (IP). The 40-hectare factory’s construction is expected to start this May.
LG expected to receive the city’s support in licensing its investment certificate and ensuring water supply for the new facility so that the project’s construction can be implemented on schedule.
“Once the factory comes into operation, it will play an important role in the city’s socio-economic development. The city commits to providing preferential conditions for the investor during the construction process. Besides, it is the first time at the IP that the investor receives support to construct accommodations for its employees,” said Le Van Thanh, Chairman of the Haiphong People’s Committee.
Thanh also said LG could consider to sell 20 per cent of its OLED output from the new facility on the domestic market.
In April 2015, LG inaugurated its 800,000 square metre electronic manufacturing complex in Trang Due IP, which specialises in producing price-competitive electronic goods, including televisions, mobile phones, washing machines, and air conditioners. The total sum of $1.5 billion invested in the complex will be disbursed between 2015 and 2028.
Being LG’s largest facility in Southeast Asia, the complex helps to make Vietnam one of the largest electronics export hubs in the world. Furthermore, it opens up good opportunities for part suppliers in Vietnam to co-operate and meet the group’s demand for support services and components. In the next five years, 70 per cent of the Haiphong-based complex’s products will be exported to 35 countries worldwide.
