LG Display plans to pour $1.5 billion into an OLED plant in Hai Phong city. (Photo: www.koreaittimes.com)
South Korea’s LG Display Co Ltd on Tuesday signed a memorandum of understanding with Hai Phong’s government to build a new display module assembly plant with an investment of $1.5 billion in the city, according to the Ministry of Planning and Investment-run Dau Tu (Investment) newspaper.
Work on the plant is scheduled for kick-start in early May 2016 in Trang Due Industrial Park and operation in the second half of 2017. It will churn out organic light-emitting diode (OLED) displays.
The panel maker, which supplies smartphone screens to clients such as Apple Inc and LG Electronics Inc., named comparatively lower salaries in Vietnam and the country’s proximity to China as the key reasons for deciding to build the plant in the country, Reuters reported.
Le Van Thanh, chairman of Hai Phong People’s Committee asked the South Korean firm to ensure salary payment to its laborers and proposed it sell 20% of its products in Vietnam.
LG Electronics in March 2014 put into operation a $1.5 billion plant that produces TVs and other home appliances, also in Trang Due IP.
The Vietnamese government grants a number of incentives for hi-tech projects in the country, aiming to move Vietnam up in the global value chain.
Samsung Electronics Vietnam (SEV) has recently won approval to build a $300 million R&D center in Hanoi, after the local government agreed to meets almost all petitions of the South Korean technology giant.