LG Display unveiled on April 6 it has inked a deal to build a display module factory in the North region of Vietnam with the city government of Hai Phong, the third-largest among the Vietnamese cities.
The Korean display manufacturer will invest US $100 million to set up a local operation and start construction of a factory in the first half of this year, targeting its full operation in the latter half of next year.
The company explained that it decided to build the new manufacturing facility in Vietnam to meet the expanded global demand for OLED modules. LG Display currently runs several factories to produce display modules in Paju and Gumi in Korea as well as Guangzhou, Nanjing and Yentai in China along with Wroclaw in Poland.
The reason LG Display chose Vietnam as the destination of investment for establishing the new facility to produce display modules is that the factory location is in the North region of the country which is close to China where many clients are housed, making the transportation easy and cost effective. In addition, the region has an abundant youth labor that can be secured at low salaries.
“LG Display will enhance the global competitiveness based on the secured production base in Vietnam that is favorable to foreign investment,” said Jeong Cheol-dong, chief production officer (CPO) at LG Display.