Hai Phong plant set to become major supplier.
Vietnam's newest major production facility, operated by LG Electronics (LG), was officially opened in the northern city of Hai Phong on March 27. It is the biggest LG facility in South East Asia, located in the Trang Due industrial zone across 80ha, and will manufacture televisions, mobile phones, washing machines, air conditioners and vehicular infotainment systems for the domestic and overseas markets.
The opening ceremony was attended by more than 400 guests including high-profile officials such as Vietnam President Truong Tan Sang, Korean Ambassador to Vietnam Dae-joo Jun, and LG executives including LG Corporation Chairman Bon-moo Koo and LG Electronics Vice Chairman and CEO Bon-joon Koo.
The Hai Phong facility has seen an investment of $1.5 billion and will increasingly become a major supplier of LG products. Hai Phong was chosen as its location due to its transport capabilities and being seen as an area of strategic importance because of its position in Vietnam's north. Vietnam's labor market also provides employees that are qualified and highly skilled.
The localization rate of products produced at the plant is expected to reach 50 per cent in the first phase of investment with that figure expected to grow into the future.
At the beginning of 2015, the production capacity of the complex stands at 300,000 smart phones, 245,000 air conditioners, 800,000 televisions, 1.8 million vacuum cleaners, one million washing machines and another one million car entertainment devices.