LG units in Haiphong seek $100 million support package

LG units in Haiphong seek $100 million support package

LG Group’s major subsidiaries in Haiphong are seeking significant support to boost training, research, and high-tech production.

LG Display, LG Electronics, and LG Innotek, all recognised in 2024 as high-tech enterprises or high-tech application projects, have proposed a support package worth VND2.5 trillion ($100 million) to fund workforce training, research and development, fixed asset investments, and high-tech product manufacturing in the city.

LG Display is requesting approximately VND1.65 trillion ($66 million), LG Electronics over VND441 billion ($17.6 million) and LG Innotek nearly VND402 billion ($16.8 million).

The group’s consolidated financial report for the first half of 2025 shows varied results for its entities in Haiphong. In the first half of the year, LG Electronics reported a revenue of VND57 trillion ($2.2 billion), up 9.35 per cent compared to the same period in 2024, but net profit was only VND2.16 trillion ($86.4 million), down 13 per cent on-year.

By contrast, LG Innotek saw a significant decline, with revenue of VND37.18 trillion ($1.4 billion), and net profit of VND1.45 trillion ($58 million), signifying a decrease of 37 per cent and 50.8 per cent on-year, respectively.

In 2024, LG Electronics achieved revenue of VND107.13 trillion ($4.2 billion) and a profit of VND3.3 trillion ($132 million).

LG Innotek recorded revenue of VND103.02 trillion ($4.1 billion) and a profit of VND3.57 trillion ($142.8 million).

Haiphong is a major production hub for the group, hosting LG Electronics, LG Innotek, LG Display, and LG Chem. LG Display, licensed for investment in 2016 with an initial capital of $1.5 billion, increased its registered capital to $7 billion after 11 adjustments by February 2025. The company currently employs nearly 20,000 workers.

LG Electronics, with a registered capital of $1.2 billion, specialises in producing household electronics, monitors, and televisions, employing about 2,500 workers.

Meanwhile, LG Innotek was established in 2013 with a registered capital of $2 billion, it has disbursed $932 million so far.

VIR