According to the plan, LG will complete this production conversion this year while reassigning affected workers. LG’s factory in Hai Phong. LG Vietnam President Jung Hai-jin affirmed that the cessation of smartphone production in Vietnam is part of LG’s plan to restructure its basic product portfolio, and affirmed that this plan will not significantly including production and sales activities as well as LG employees in Hai Phong. In 2015, LG opened the production line in Hai Phong. The factory currently has more than 16,000 workers and mainly produces home appliances, smartphones and car infotainment products. In addition, leaders of LG Vietnam also leave open the possibility of additional investment in this factory in the near future. In addition, a representative of LG Vietnam also denied the information that LG offered to sell a smartphone factory in Hai Phong for more than 2,000 billion VND. “It is true that we stopped making smartphones, but this is only one line in the factory. We also produce other products such as washing machines, vacuum cleaners … ”, emphasized LG Vietnam representative. according to Yonhap

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)

The meeting between leaders of Foreign Investment Department, Hai Phong Economic Zone Authority and LG Electronics Vietnam

At the meeting between the leaders of the Foreign Investment Department (Ministry of Planning and Investment), Hai Phong Economic Zone Authority and LG Electronics Vietnam Company in Hai Phong on the afternoon of April 14, Mr. Jung Hai Jin, The General Director of LG Electronics Vietnam in Hai Phong shared about LG Group’s withdrawal from smartphone production in Hai Phong.

Mr. Jung Hai Jin said: “Smartphones are one of many other electronic products that LG is making here. The withdrawal or reduction of smartphone production at the Hai Phong factory is the policy of LG Electronics globally. in product restructuring. ”

Previously, according to Business Korea, LG Electronics was gradually closing factories in Taubate (Brazil) and Qingdao (China). LG’s cessation of smartphone production in Hai Phong is part of the group’s policy to withdraw from the smartphone market to focus resources on better growing businesses such as electric vehicle components, cars, and equipment. connections, civil electricity …

LG Electronics Vietnam in Hai Phong officially came into operation in 2013, up to now, this enterprise has an investment capital of up to 1.5 billion USD, including factories manufacturing products such as audio-visual equipment, home appliances, informatics products, air conditioners and air solutions, beauty equipment … to supply to the global market.

Right at this moment, LG Electronics Vietnam Hai Phong is investing in an additional factory to produce super super washing machines, this factory has a factory area of ​​up to 43,000m2, adjacent to the phone factory. This factory is expected to come into operation by the end of 2021.

Mr. Le Trung Kien, Head of Hai Phong Economic Zone Authority, said that LG Electronics Vietnam is part of LG Group’s group of manufacturing companies located in Trang Due Industrial Park. Compliance with regulations and policies on investment law and the environment and make a great contribution to the export and import turnover, as well as the city budget. In particular, LG Electronics Vietnam is a business with good links and cooperation with the business community in increasing the localization of products and focusing on the welfare of employees.

At the meeting, Mr. Do Nhat Hoang, Director of the Foreign Investment Department, said that an enterprise or a corporation changes its production and business strategy, positioning its products to suit its capacity. Intrinsic is very normal, especially, in the face of a breakdown in global supply chains due to the Covid 19 pandemic, the restructuring of enterprises is inevitable and necessary.

Sharing the company’s policy, Mr. Jung Hai Jin, General Director of LG Electronics Vietnam in Hai Phong said that LG Group in general and LG Electronics in particular define Vietnam as a country with an investment environment. Safe, attractive, so maintaining and continuing to invest here is a long-term and sustainable development strategy.

Before the information around the smartphone factory in Hai Phong, Mr. Jung Hai Jin affirmed: “We have no plan to sell the factory, but if the product restructuring, this facility will be transformed. to the new function, all workers working in the smartphone factory will be kept intact to serve the production of other products “.