The leader of LG Vietnam confirmed that the information that this company sold for the Hai Phong factory for VND 2,000 billion was incorrect.
Mr. Jung Hai Jin, General Director of LG Electronics Vietnam Co., Ltd. (LGE) said that the cessation of smartphone production in Hai Phong is the restructuring of key products of the business and no photo. Affecting the production and business activities of LGE in Hai Phong as well as the jobs of workers here, there is no sale of Hai Phong factory for 2,000 billion VND.
The information of LG listing for sale of the factory in Hai Phong is incorrect.
The factory project of LG Electronics has an investment of 1.5 billion USD. Not only producing smartphones, LG Electronics Hai Phong also produces other electronic products such as TVs, air conditioners, vacuum cleaners, washing machines … In addition, LG also provides after-sales services, installation services. Place, maintain, repair and warrant all LG products here.
It is known that this company’s contribution has also increased sharply in recent years. If in 2018, LG Electronics Vietnam Hai Phong Company Limited paid the budget of about 52 billion VND, in 2019 it reached nearly 300 billion VND and in 2020, it is estimated that this company paid more than 400 billion VND to the budget.
According to research, in Vietnam, LG has 3 big factories in Hai Phong including LG Electronics Factory specializing in manufacturing smart phones, air conditioners, vacuum cleaners, televisions, refrigerators…; LG Innotek Vietnam factory specializes in manufacturing camera modules for phones and LG Display Vietnam factory specializes in manufacturing electronic displays. These three LG factories employ a large number of workers in Hai Phong.
Earlier, Business Korea reported that LG Electronics had started to withdraw from the smartphone business. The company is closing factories in Hai Phong (Vietnam), Taubate (Brazil) and Qingdao (China).
Before deciding to give up on the smartphone business, LG has taken various measures to take advantage of these factories but has yet to make a breakthrough.
In particular, the Hai Phong factory – the largest among LG’s smartphone factories – is also initially expected to find a buyer.
However, according to Business Korea, LG Electronics is difficult to find buyers because smartphone manufacturers in Vietnam already have enough production lines. Meanwhile, domestic companies cannot afford to buy back the factory for more than 100 billion won offered by LG. Therefore, according to Business Korea, LG is only considering selling the factory location.
LG Hai Phong phone factory currently produces about 10 million units per year, of which about half are smartphones from LG.
Thu Ha (Th)
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