LG Display Puts $1.5-Billion Vietnam Plant into Operation

Tuan Minh

14:12 05/12/2017

BizLIVE - Besides LG Display, LG Electronics and LG Innotek also have production facilities in Hai Phong city.

LG Display Puts $1.5-Billion Vietnam Plant into Operation

PM Nguyen Xuan Phuc tours LG Display plant in Hai Phong. Photo: Quang Hieu/VGP

South Korea’s LG Display has started operation of a $1.5-billion plant in Vietnam’s northern port city of Hai Phong, making it the firm’s first overseas complex dedicated to the organic light-emitting diode display (OLED).
The plant, whose construction started in early May 2016, will churn out OLED screens for mobile devices such as smartphones, smart watches, and tablets, the Vietnamese government has said on its website.
“The Vietnamese government and the Hai Phong authorities always create the best conditions for domestic and foreign investors to succeed in Vietnam. We consider companies’ success ours,” said Prime Minister Nguyen Xuan Phuc at the inauguration ceremony, showing hope LG Display will expand and increase its localization ratio.
The decision to build the Vietnamese complex is aimed to better respond to increasing demand for OLED displays in the global market. LG Display supplies smartphone screens to clients such as Apple Inc. and LG Electronics Inc.
Comparatively lower salaries in Vietnam and the country’s proximity to China were the key reasons for deciding to build the plant in the country.
The Investor on December 4 reported that LG Display on November 30 approved a funding plan worth 1.19 trillion won ($1.10 billion) for the expansion of its Vietnamese module plant.
The display firm currently runs two manufacturing plants for OLED displays in the Korean cities of Paju and Gumi. The South Korean government has delayed approval for the company’s first OLED plant in China for fears of possible tech leaks to Chinese rivals.
Besides LG Display, LG Electronics has a $1.5-billion complex also in Hai Phong and LG Innotek in October started churning out single- and duel-lens camera modules at its $230-million in the same city.