LG Innotek Pledges $1B for Vietnam Expansion, Boosting Camera Module Output

LG Innotek Pledges $1B for Vietnam Expansion, Boosting Camera Module Output

LG Innotek has announced a significant investment in Vietnam, pledging $1 billion by the end of 2025 to boost its optical solutions production capacity. This move comes as the company aims to make Vietnam a major hub for its camera module output.

LG Innotek's Vietnam plant in Hai Phong has already seen impressive growth. In Q1 2025, it reported revenue of KRW1.15 trillion ($834 million) and a profit of KRW66.9 billion ($48.27 million). The company has also doubled its camera module capacity with the completion of the V3 plant.

LG Innotek plans to use a $200 million sustainability-linked loan from the World Bank's IFC to build a third plant in Hai Phong, spanning around 150,000 square meters. This marks the first time a South Korean company has received such funding from the IFC. The new plant is expected to further increase LG Innotek's production capacity and solidify Vietnam's role as a key manufacturing hub.

LG Innotek's continued investment in Vietnam, totaling $8.24 billion as of April 2024, reflects the company's commitment to the region. With the planned expansion, LG Innotek aims to produce 70-80% of its camera modules in Vietnam within the next two to three years, solidifying the country's position as a crucial partner in LG's global supply chain.

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