South Korean firm LG pours additional $1bn into Vietnam's Hai Phong
Tuesday, June 27, 2023, 09:57 GMT+7
South Korea’s LG Innotek will spend US$1 billion developing a plant in Hai Phong City, northern Vietnam in the 2023-25 period, taking its total investment in the port city to $2 billion.
The Hai Phong People’s Committee granted an investment registration certificate to the South Korean firm on Monday.
The city’s delegation led by Le Tien Chau, secretary of the Hai Phong Party Committee, worked with the leaders of LG Corporation and its subsidiary LG Innotek in South Korea on June 13.
During the working session, the leader of LG Innotek signed a memorandum of understanding with the municipal People’s Committee to expand its investment and operation at the Trang Duc industrial park in An Duong District.
After three working days, the Hai Phong Economic Zone Authority asked for the green light from the Hai Phong administration to issue the certificate to LG Innotek Vietnam Hai Phong Company to demonstrate its determination in simplifying administrative procedures and improving the business climate.
Le Trung Kien, head of the Hai Phong Economic Zone Authority, said that the city presented an investment registration certificate to the firm's factory in 2016.
In September 2017, the facility located in the Trang Due industrial park was put into operation.
The plant, projected to cost $1 billion, specializes in producing camera modules, with a workforce of 3,500 workers.
The hike in LG Innotek’s investment will contribute to raising the total foreign direct investment into Hai Phong to $1.9 billion in the first half of 2023, reaching 95 percent of the city’s full-year target.
The additional capital will be used to build a smart plant that is expected to create jobs for 2,600 workers, and help the firm earn $400 million per year and contribute VND100 billion ($4.2 million) to the state budget, Kien said.
Le Tien Chau expects LG Corporation in general and LG Innotek in particular to keep expanding their reach and carry out some new projects to make more contributions to the city’s development.
Chau also pledged to create more favorable conditions for foreign investors, simplify administrative procedures, and lift obstacles facing firms, paving the way for them to do business in the city.
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| Le Tien Chau (standing), secretary of the Hai Phong City Party Committee, is committed to supporting the South Korean firm. Photo: D. Thanh / Tuoi Tre |
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