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Cooperation & support

Released at: 23:32, 01/11/2014 Vietnam - South Korea Relationship

Cooperation & support

Mr Ko Tae Yeon, General Director of LG Electronics Vietnam, shared his thoughts with VET's Hai Bang about its $1.5 billion new factory complex and economic relations between Vietnam and South Korea.

by Hai Bang

How do you view investment relations between Vietnam and South Korea over recent times?

According to data for the first three quarters of this year, South Korean enterprises are developing (more than their Japanese counterparts) and are leading in terms of foreign direct investment projects in Vietnam, with $3.55 billion in many important fields: electronics, processing, real estate, construction, and others. This expresses the stable development of the investment and development partnership between South Korea and Vietnam.

The two countries’ investment relations are mutually beneficial and we can now see many Vietnamese enterprises searching for investment opportunities in South Korea and also South Korean investors looking for more opportunities in Vietnam. This is a great sign for bilateral trade and investment relations. I firmly believe that this trend will increase in the future.

Vietnam and South Korea have also become closer through many cultural exchange programmes and activities. This helps investors from both countries understand more about the other’s business culture, human relationships and behaviour. It also will be helpful in strengthening bilateral trade and investment relations between two countries into the future.

What are the significant achievements of LG Electronics Vietnam (LGEVN) that make it a successful symbol of South Korean investment in Vietnam?

LGEVN has invested in Vietnam since 1995 and we will celebrate our 20th anniversary next year. This is a very meaningful milestone. We built our first two factories in Vietnam for both the domestic market and for export and have also invested $1.5 billion in a new factory at the Trang Due Industrial Zone in Hai Phong city. Success will come from our strong commitment to Vietnamese consumers and society.

Our factories are equipped with high-technology and modern facilities that match our global standard, so LGEVN has provided skills training to local human resources. We have signed agreements to cooperate and support the training of hi-tech engineers with Vietnamese universities, including the Hanoi University of Science and Technology, the National University, and the Vietnam Maritime University.

We also focus on developing relations with support industries in Vietnam to increase the localisation rate. These manufacturers help LGEVN approach Vietnamese consumers with hi-tech products at reasonable prices. For example, premium TV line-ups such as OLED and Ultra HD are already available in Vietnam. 

LGEVN also expresses a strong commitment to implementing our corporate social responsibility by providing sponsorships to education, environmental protection, and social activities, including sponsoring The Way To Olympia for 15 consecutive years and the Olympia for Secondary Schools for three consecutive years, Earth Hour, Global Volunteers Day, the TV programme “The 7th Wish List”, the building of houses for heroic mothers, donating to mountainous and remote schools and students, and the “LG Loving 3D Movie Theatre” show in 2014, which reached about 10,000 students nationwide in poor and remote areas who have never seen a 3D movie. 

Development milestones

July 1995: LG-Sel Electronics Vietnam Co., Ltd founded. Business field: electrical products.
May 1997: LG-MECA Electronics Inc. established. Business field: refrigeration products.
July 2002: LG-Sel Electronics Vietnam Co. Ltd becomes a 100 per cent foreign invested enterprise and is renamed LG Electronics Vietnam Co.,Ltd.
August 2005: LG-MECA Electronics Inc. merges into LG Electronics Vietnam. Business field: electrical products, refrigeration products, mobile phones, and energy-saving solutions.

LGEVN officially put its $1.5 billion factory complex into operation this month. Can you tell us more about the complex? What is the importance of the new factory complex to LGEVN’s investment strategy in Vietnam?

The factory has been built at the Trang Due Industrial Zone in Hai Phong city on 4.3 ha and will produce all kinds of electronic goods for the domestic and global markets. Moreover, we will not cease developing new products and technology that meet consumer demand. The Vietnam factory will become our global manufacturing base for the future, and this will be our strategy for investment. We will continuously consider and make our strategy feasible, so we hope that we will receive continuous support from the government to have safe, stable and long-term investment in Vietnam.

Does LGEVN have any plans for smartphone investment in Vietnam?

Smart technology will be the main technology at the new factory, not just smartphones but also smart TVs, smart car matrixes, and home appliances. We are seriously considering smartphones and will make a decision soon. At this moment we will produce for the domestic market first, which could enable us to take other steps in the future.

What are the major business strategies of LGEVN over the next five years?

We will continuously develop and deliver smart technology products and any other products that customers need. LGEVN will also expand and strengthen its network nationwide, from service networks to distribution channels to provincial areas to meet consumer demand. Consumers will receive our best services and be up-to-date with our latest technology products. LGEVN wants to make LG the first brand in the hearts of end users.

Having been a partner of VET since the early days, what comments would you care to make on its 20th anniversary? 

We’d like to congratulate VET on its 20th anniversary, which confirms the magazine’s reputation and reliability. As a foreign business in Vietnam we have been a regular reader of VET and we hope it will get bigger with the development of enterprises and Vietnam’s economy. I hope there is even more valuable information for foreign investors on Vietnamese business and behaviour, and that VET will be as a good business partner of foreign investors in Vietnam.

LG Electronics Vietnam (LGEVN) is part of LG Electronics – a global leader and technology innovator in consumer electronics, mobile communications, and home appliances. The mission of LG Electronics Vietnam is to create and develop high-quality products, bringing a beautiful life to customers, consumers and community. The company’s vision is to become the Number One electronics brand in the market and become the enterprise making the greatest contribution to the development of Vietnam’s economy and society.  “For all of us, the customer is our top priority in all aspects of research, marketing, supply chain management, and customer services,” said Mr Ko Tae Yeon, General Director of LGEVN. “Without customers’ belief, no enterprise can survive and develop stably. LGEVN understands this completely.”

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