Vietnam hopes that LG, a South Korean supplier of car parts, will continue to increase its investment in the northern port city of Haiphong and build more research and development (R&D) facilities there.

An overview of the meeting. Photo: VGP

Deputy Prime Minister Tran Luu Quang conveyed this wish during a meeting with LG Display's Deputy Chairman Kim Myoung-kyu On March 31 in Hanoi.

The Deputy Prime Minister spoke highly of the group's and its subsidiary [LG Display]'s business activities and investments in the country, which have advanced the comprehensive strategic partnership between South Korea and Vietnam and contributed to its socioeconomic growth.

According to Quang, the Prime Minister has recently approved the adjustment of the Haiphong City Master Plan to 2040 with a vision towards 2050. This is expected to increase the land fund for industrial development and thus create favorable conditions for investors, including LG Group, to expand their investment scale in the city.

Kim Myoung Kyu, vice president of LG Display Company, praised Haiphong and the Vietnamese Government for their assistance in executing investment projects and sustaining business and production activities in Vietnam, particularly during the Covid-19 period.

On March 9, LG established a new R&D subsidiary [LG Electronics] in Hanoi to strengthen R&D capabilities in Vietnam for automotive parts. It is part of LG’s strategy to solidify its global auto parts market position and lead the fast-approaching autonomous driving era.

In 2020, LG also opened an R&D office for auto parts in the central city of Danang to boost its electric vehicle-related business and nurture talent.

According to the Management Board of Hai Phong Economic Zone, LG Group has seven investment projects in the port city of Haiphong, with a total investment capital of more than US$7 billion. The largest businesses are LG Electronics, LG Display, and LG Innotek.

Besides, more than 50 South Korean enterprises are satellite companies with an investment of nearly $1 billion.

With $12.4 billion in export revenue in 2022, LG's companies accounted for more than 40% of Haiphong's total export revenue. Additionally, they employed close to 40,000 people inside and outside the city.

South Korea remains Vietnam’s largest foreign investor, with accumulated registered capital of nearly $82 billion. In addition, the South Korean side has invested in 19 out of 21 economic sectors in 59 out of 63 Vietnamese provinces and cities.