IFC invests $200 million in LG Innotek Hải Phòng

IFC invests $200 million in LG Innotek Hải Phòng

The investment will help LG Innotek Hai Phong build a third plant to expand production of smartphone camera modules.

LG Innotek Hải Phòng. — Photo nhadautu.vn

The International Finance Corporation (IFC) has announced a US$200 million investment in LG Innotek Hải Phòng Co., Ltd. (LGITVH), a subsidiary of Korea’s LG Innotek, to boost Việt Nam’s electrical and electronics industry, create jobs and strengthen local supply chains.

The investment will help LGITVH, which currently operates two factories in Hải Phòng with over 5,000 employees, build a third plant to expand production of smartphone camera modules.

The new facility is expected to transform LGITVH into a comprehensive manufacturing hub, deepen cooperation with domestic suppliers and enhance value addition while developing a highly skilled workforce.

The electrical and electronics industry is Việt Nam’s largest export earner, contributing about 40 per cent of total exports and providing jobs for over 900,000 workers. Yet the sector still depends heavily on imported components, with limited localised inputs. IFC’s financing will help diversify products, adopt more complex processes and improve competitiveness.

“IFC’s loan will strengthen LG Innotek’s global business while enhancing LGITVH’s capacity and quality,” said Ji-hwan Park, chief finance officer and senior vice president of LG Innotek. He noted the partnership would advance the company’s environmental, social and governance practices.

The loan is structured as a sustainability-linked loan, encouraging LG Innotek to cut emissions and align with its sustainability roadmap. The company targets 100 per cent renewable electricity by 2030 and carbon neutrality by 2040.

According to Carsten Mueller, IFC Regional Industry Director of Manufacturing, Agribusiness and Services for Asia and the Pacific, the project will not only create skilled jobs but also attract further investment, build greener supply chains and strengthen Việt Nam’s position as a hub for sustainable, high-value production. 

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