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South Korea's LS Electric has entered into a partnership with Becamex as part of its plan to penetrate Vietnam's smart factory solutions market.
As reported by Business Korea, LS Electric signed an MoU with Becamex to woo local companies for its smart factory solutions on October 14.
Under the agreement, LS Electric will be responsible for solution supply contracts, ranging from proposals to execution and operation. The South Korean company is also in charge of overall smart factory construction and will extend its reach to renewable energy sectors such as energy storage systems. Becamex will act as a coordinator for the project, promoting industrial complexes and finding potential customer companies through smart factory marketing.
According to LS Electric, Vietnam is emerging as a key Southeast Asian market for digital innovation and eco-friendly manufacturing. The Vietnamese automation market, valued at approximately $2.7 billion last year, is expected to grow to around $4.5 billion by 2028 with an average annual growth rate of 8.8 per cent.
"Through this MoU, we will be able to accelerate Vietnam's manufacturing industry’s digital transformation and contribute to building a sustainable industrial ecosystem," said Cho Wook-dong, a director at LS Electric. "We will focus on boosting productivity, process operation efficiency and product quality in Vietnam's manufacturing industry, and prepare to target the ASEAN market in the long term."
LS Electric is one of the first generation of South Korean companies that entered Vietnam in the mid-1990s. Since 2013, the firm has maintained its position as the leading player in the Vietnamese power equipment market, having secured over 35 per cent of the market share.
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