Employees to Be Retained
LG Electronics will change its smartphone production line on Haiphong Campus in Vietnam to a production base for household appliances. The move is intended to dismiss recent rumors about the sale of the plant in Vietnam.
LG Electronics' Vietnamese subsidiary announced through the company’s global newsroom on April 20 that it will carry out the production line conversion and manpower rearrangement within this year and then announce additional investment plans.
The announcement seems to be aimed at dealing with rumors that the company would sell off the smartphone production facilities in Vietnam. Earlier, some media outlets reported that LG Electronics attempted to contact a Vietnamese company to sell its smartphone production facilities.
LG Electronics established the LG Haiphong Campus in Haiphong, Vietnam in 2015. It has been producing smartphones, TVs, and home appliances. In 2019, it stopped producing smartphones in Korea and relocated production lines to Haiphong. The smartphone lines in Haiphong can produce 10 million units annually. Its affiliates such as LG Innotec and LG Display are producing camera modules and displays in Haiphong.
Meanwhile, LG Electronics will completely pull out of the mobile phone business on July 31. It is currently negotiating with workers at its factory in Taubate, Brazil over the relocation of production lines.