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LG Display to invest $ 750 million to expand OLED production in Vietnam
South Korean LG Display is going to increase investment in Vietnam. This was a consequence of the increased trade risks of working in China, as well as a response to the increase in production costs in this country. LG Display will finance OLED production in Vietnam. The company is ready to allocate $ 750 million for new capacities.
Image source: Reuters
Construction of new facilities should begin between March and May. The plant is located in the port city of Haiphong in the north of Vietnam, not far from China. Future plant will create 5,000 new jobs, according to local authorities. LG Display has a factory in Haiphong, a subsidiary of LG Innotek, which makes products for Apple. Thus, the South Korean company will become the largest foreign investor in this city.
New capital infusion boosts LG Display’s total investment in Vietnam to $ 3.25 billion. The previous contribution of the LG conglomerate to this country was the start of construction in 2021 of the company’s second R&D center in Southeast Asia.
Cash and technology investment by LG Display and other companies in Vietnam helps the country to expand its international trade activities. For example, Vietnam’s electronics exports jumped 56% between January and November 2021, according to the General Bureau of Statistics of Vietnam. Now thanks to the COVID-19 pandemic for this, but LG Display and others are doing a lot of good for Vietnam, which will allow it to increase exports even in normal economic conditions.