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Samsung, LG Focusing on Vietnam as Production Base
Strategic Manufacturing Base
Samsung, LG Focusing on Vietnam as Production Base
  • By Cho Jin-young
  • April 7, 2016, 03:15
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The Samsung and LG Groups are expanding their production in Vietnam in an effort to rely less on China centered on their flagship companies of Samsung Electronics and LG Electronics.
The Samsung and LG Groups are expanding their production in Vietnam in an effort to rely less on China centered on their flagship companies of Samsung Electronics and LG Electronics.

 

The Samsung and LG Groups are expanding their production in Vietnam in an effort to rely less on China. Both of the groups are planning to move their electronic component manufacturing subsidiaries and R&D units to Vietnam to form clusters there.

According to industry sources, LG Display recently decided to invest in Haiphong City, Vietnam in order to set up manufacturing facilities for next-generation OLED display assembly. LG Electronics is already doing business in the region. The electronics company has manufactured TV sets and mobile phones in the Hung Yen Province since 1995 and built production facilities in the port city located in northern Vietnam in March last year. At present, its facilities in Haiphong are producing not only TV sets and mobile phones but also washing machines, cleaners, air conditioners, in-vehicle infotainment systems, etc. LG Electronics is planning to expand its production lines there by investing a total of US$1.5 billion until 2028. 

In the Samsung Group, all of its electronics subsidiaries, that is, Samsung Display, Samsung SDI, Samsung Electronics and Samsung Electro-Mechanics, are expanding their business in Vietnam. Samsung Electronics put a mobile phone manufacturing plant into operation in the Bac Ninh Province five years ago and built another one in the Thai Nguyen Province in 2013. About half of Samsung mobile phones are currently being manufactured in Vietnam.

Samsung Electronics is expanding its consumer electronics manufacturing facilities in the Saigon High-Tech Park in Ho Chi Minh City, too. The facilities began to produce TV sets as of late and US$2 billion is scheduled to be invested there until 2020. In addition, Samsung Electronics won the Vietnamese government’s approval last month with regard to the establishment of a mobile R&D center in Hanoi at an investment of US$300 million.

Samsung Display’s display module assembly plant in the Bac Ninh Province has been in operation since last year. The company is going to increase its production capacity by investing US$3 billion. Samsung SDI, in the meantime, set up small-capacity battery manufacturing facilities in Hanoi in 2010 and has supplied its products to Samsung Electronics and Southeast Asian clients. It is going to start the construction of a polarizer film plant in Vietnam within this year, too. Samsung Electro-Mechanics has produced camera modules and mobile substrates in the Thai Nguyen Province since last year.