LG Completes Construction of Largest Manufacturing Plant in Vietnam
luvsmiling, March 30, 2015, 7:59 a.m.
LG Electronics has opened its largest production base in Hai Phong, Vietnam to support its global expansion plans. The company celebrated the completion of construction with a ceremony on Friday.
The complex in the northern port city of Vietnam will combine and expand LG's two existing manufacturing facilities in the Southeast Asian country for the local market to produce all its products, from home appliances to cell phones, for the global market. LG Electronics will invest US$1.5 billion in the complex by 2028.
The group's vice chairman Koo Bon-joon said the new site will help take its business to the next level, noting that this year marks the 20th anniversary of its entry into Vietnam. He promised LG would make an intensive effort and provide whatever resources are required to make the facility a major global production base.
The new site is expected to spark a rivalry with Samsung Electronics, which operates four plants in Vietnam -- two for cell phones in Hanoi and two for TVs and home appliances in Ho Chi Minh. Samsung is also building another plant in Ho Chi Minh to meet growing global demand. It plans to invest $560 million in the new facility to produce home appliances.