LG subsidiaries in Haiphong request a $100 million assistance package
In the bustling city of Haiphong, Vietnam, the LG group is making significant strides in its operations. LG Electronics, LG Display, LG Innotek, and LG Chem have all established a strong presence, transforming Haiphong into a major production hub for the South Korean conglomerate.
Recently, Nam-Sik Jang and Jung Han Kwon, leaders from LG VS Vietnam, held a discussion with VIR's Thanh Van, focusing on LG Electronics' growth strategies and its emphasis on security. Part of this strategy includes a support package worth VND2.5 trillion ($100 million) for workforce training, research and development, fixed asset investments, and high-tech product manufacturing in Haiphong.
LG Electronics, specialising in producing household electronics, monitors, and televisions, reported a revenue of VND57 trillion ($2.2 billion) in the first half of 2025, marking an increase of 9.35% compared to the same period in 2024. However, the net profit saw a decrease, amounting to VND2.16 trillion ($86.4 million), down 13% on-year.
Meanwhile, LG Display, which employs nearly 20,000 workers, requested approximately VND1.65 trillion ($66 million) for its operations. LG Electronics followed suit, requesting over VND441 billion ($17.6 million), and LG Innotek nearly VND402 billion ($16.8 million).
LG Innotek, established in 2013 with a registered capital of $2 billion, has disbursed $932 million so far. In 2024, it recorded revenue of VND103.02 trillion ($4.1 billion) and a profit of VND3.57 trillion ($142.8 million). However, in the first half of 2025, the company experienced a significant decline, with revenue of VND37.18 trillion ($1.4 billion), and net profit of VND1.45 trillion ($58 million), signifying a decrease of 37% and 50.8% on-year, respectively.
One of the highlights of LG's Vietnamese operations is LG Electronics' manufacturing facility in Vietnam, which has earned Cyber Security Management System (CSMS) Level 3 certification from TÜV Rheinland. This certification boosts Vietnam's role in LG's global supply chain through its Haiphong Campus's cybersecurity milestone.
Moreover, LG Chem in Haiphong specialises in the production of lithium-ion batteries, primarily for electric vehicles. In 2024, LG Electronics achieved revenue of VND107.13 trillion ($4.2 billion) and a profit of VND3.3 trillion ($132 million).
Another significant development in the partnership between Vietnamese and LG companies is the MoU signed by Kim Long Motor Hue JSC and LG Energy Solution for the supply of battery cells.
LG Display, licensed for investment in 2016 with an initial capital of $1.5 billion, has since increased its registered capital to $7 billion after 11 adjustments by February 2025.
The LG group's commitment to Vietnam is evident in its ongoing investments and strategic partnerships. As Haiphong continues to serve as a key production hub, the future of the LG group in Vietnam looks promising.
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