LG Electronics Converts Vietnam Mobile Phone Factory to Home Appliance Production..."Employment Maintained"

Employees are manufacturing products at LG Electronics' Haiphong Campus in Vietnam.
[Photo by LG Electronics Global Newsroom website]

[Asia Economy Reporter Kim Heung-soon] LG Electronics, which has officially announced its withdrawal from the mobile phone business, is converting its smartphone factory at the Haiphong Campus in Vietnam, which has served as its largest smartphone production base, into a home appliance production line and has decided to guarantee employment for local employees.

LG Electronics Vietnam Corporation stated through its global newsroom on the 20th that it plans to complete the production line conversion and employee reassignment within this year and will announce additional investment plans thereafter.

Jung Hae-jin, General Manager (Executive Director) of LG Electronics Vietnam Corporation, said, "LG Electronics plans to reorganize the production line and expand production capacity," adding, "We will manufacture additional products with high demand in the global market, such as home appliances, to replace smartphones."

He also emphasized, "Halting smartphone production here is part of LG Electronics' plan to restructure its core product portfolio," and "LG Electronics' production and business activities in Haiphong, as well as employee employment, will not be significantly affected."

Previously, LG Electronics established the 'LG Haiphong Campus' in Haiphong in 2015, producing TVs, home appliances, and smartphones. Affiliates such as LG Innotek and LG Display also manufacture mobile phone camera modules and displays here, respectively. More than 16,000 employees work at the Haiphong Campus. LG Electronics expects, "If all plans proceed smoothly, the Haiphong Campus will show clear growth in the future."

Meanwhile, LG Electronics announced on the 5th that it will end its mobile phone business in July and is currently negotiating with the labor union of the Taubate factory in Brazil regarding the relocation of the production line.