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Vietnamese Vingroup expressed interest in buying LG’s smartphone business
22.01.2021 [19:15],
Vasily Shkodnik

Business Korea reports that LG Electronics is in talks to sell its smartphone business to Vietnamese conglomerate Vingroup. Vingroup confirmed this.

Image source: LG

Vingroup reportedly put forward LG Electronics’ most attractive offer of all. The cost of a possible purchase has not yet been disclosed. In addition, the Vietnamese company’s offer to LG is not the only one.

If Vingroup acquires the mobile division of LG Electronics, the company can take a major step in the development of its consumer electronics business. Now Vingroup is engaged in the hotel and tourism business, digital distribution, as well as the sale of LG mobile equipment under an ODM contract. That is, at present, Vingroup orders the development of smartphone design and production from LG, after which it sells them in the country under its own brand. At the same time, Vingroup has achieved great success in the home smartphone market – it is the leader in sales of smartphones in quantitative terms, ahead of even Samsung. Vingroup may enter the US and other countries through the purchase of LG.

LG’s mobile division has reported losses for 23 consecutive quarters. In total, we are talking about more than $ 4.2 billion in operating losses for this period. The sale of unprofitable LG division became known on January 20. According to the order of the chairman of LG Group, Koo Kwang-mo, the company is going to get rid of the mobile business in parts, since it is difficult to sell it entirely.

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