South Korean multinational conglomerate LG has announced the establishment of a center for the research and development (R&D) of vehicle components in the central Vietnamese city of Da Nang.
The Da Nang Investment Promotion Agency (IPA) and the Vehicle Component Solutions – Development Center (LG VS) of LG Electronics Vietnam Hai Phong Co. Ltd. on Tuesday signed a memorandum of understanding (MoU) on the center’s foundation.
According to the MoU, the IPA will coordinate with relevant agencies to give LG instructions on procedures for setting up the center, as well as supporting the conglomerate’s member companies, research and development centers, satellite manufacturers, and subsidiary manufacturers to survey and invest in Da Nang.
On the other way around, the LG VS will admit IT students from the Vietnamese city to work at its premises and give a priority to the coastal city when it comes to the South Korean corporation’s business expansion.
The LG VS specializes in the manufacturing of components and software solutions related to infotainment systems, operations, and 3G and 4G connectivity for cars.
According to LG’s development strategy in Vietnam, it will turn Da Nang into a base for setting up the information technology research and development center of the whole corporation.
Speaking at Tuesday’s signing event, LG VS’ director Jung Seung Min pledged to successfully carry out the project.
Entering the Vietnamese market in 1995, LG has established three companies, two factories, and 80 warranty centers, employing nearly 2,000 workers, accoridng to the corporation's website.
It is already running an R&D center focused on vehicle component solutions in Hanoi.