LG Electronics plans to move its smartphone assembly factory to Vietnam. As the MC division of LG Electronics recorded an operating loss of 790.1 billion won last year, improving its profitability by increasing sales and reducing costs is the top priority.
According to the industry on the 22nd, LG Electronics is planning to relocate its smartphone assembly factory in Pyeongtaek city, Gyeonggi, to the LG Electronics Hai Phong campus. The move will be put in motion in the first half of this year at the earliest or, by the end of this year at the latest.
G8 Thinq, LG Electronics' premium smartphone launched last month, was produced at the Pyeongtaek factory. An official of LG Electronics said, "Premium smartphones have been produced mainly at Pyeongtaek plant among with several domestic and overseas production bases." LG Electronics' mobile phone production bases are located in Hai Phong, Vietnam, Qingdao and Yantai, Shandong, China, and Brazil.
An official of a company that supplies smartphone parts to LG Electronics said, "I thought it was unusual that the parts trade volume of 'G8 ThinQ' launched last month was that low, which, now, seems that it was due to their preparations for facility relocation."
In Hai Phong, Vietnam, LG Electronics' mobile phone, TV, home appliance factories and, production facilities of LG Display and LG Chem are concentrated. LG Chem announced on the 7th that it will build a battery pack production plant here.
At the time of being located at the Hai Phong campus in 2015, LG Electronics said, “This not to relocate production volume from other parts of the world including Korea to Vietnam. Rather, this is to set up a base for future business and production volume growth.”
Kwon Bong-Seok, head of the HE business division (CEO), who has also been leading the MC business division since last November, said at the press conference in February, "The restructuring of the workforce is completed, and we will push for material cost innovation to improve the cost structure."
An official at LG Electronics said, "We cannot confirm any details related to the content."