LG to invest additional $4 billion in Vietnam

In a meeting with State President Nguyen Xuan Phuc on December 5, vice chairman and CEO of LG Corporation Kwon Bong-seok, said that the corporation will continue to expand its operation in various areas in Vietnam.

The state leader expressed his hope that LG will increase investment in Vietnam, especially in the areas in which it is strong such as vehicles and mobile phone components. He hopes to strengthen cooperation in IT and software training and place LG's biggest manufacturing centre in Vietnam

President Phuc said the country would provide the best environment and infrastructure for investors, including LG.

Entering Vietnam in 1995, LG has invested $5.3 billion in multiple fields, including cameras, electronics, household appliances, and auto component production. The corporation currently recruits 27,0000 domestic employees, and its member companies generate 70,000 jobs for local people.

The northern city of Haiphong is considered LG’s manufacturing hub in Vietnam, with seven facilities in the Trang Due Industrial Zone.

The corporation also established a network of more than 50 satellite suppliers in Trang Due with the total investment capital of $1 billion.

On the same day, President Phuc received representatives of other large enterprises from South Korea, such as CJ, Lotte, Hyundai Motor, and Daewoo E&C. These representatives wish to invest more in Vietnam, particularly in oil and gas, green growth, the environment, community development, supporting industries, and construction.

South Korea and Vietnam have agreed on an upcoming plan to elevate bilateral relations to a comprehensive strategic partnership during a foreign ministerial meeting in Hanoi in late October, marking 30 years of diplomatic relations between the two countries.

Nguyen Thi Tam Tinh has been selected by authorities in Seoul to become the first foreigner with Korean citizenship to receive the prestigious Daesang award in recognition of her dedication to charitable activities.

On November 28, Vietnam Investment Review will hold an event titled “Technological Investment Cooperation between Vietnam and South Korea”.

Since Vietnam keeps moving forward with its high economic growth rate, market potential, and developments in business sectors including IT, Vietnam is still an attractive investment destination for foreign investors. However, with synchronised interest rate increases under way globally and depreciations of South Korean currency caused by the recent global recession following the geopolitical uncertainty makes it difficult for South Korean businesses to predict their affairs, as well as the profitability of their potential targets abroad.