Korean giant LG eyes Vinh Phuc as new investment destination

Korean conglomerate LG is studying investment possibilities in the northern province of Vinh Phuc, already home to big names like Toyota, Honda, and Sumitomo.

Kim Jae Beb, head of investment at LG Group, met with Vinh Phuc Chairman Le Duy Thanh Thursday to discuss issues like land leasing, tax incentives, project locations, electricity and water supply, human resources and accommodation for workers.

The group is the largest foreign investor in the port city of Hai Phong, currently employing more than 21,000 people, Kim told Thanh.

The tech giant has selected Hai Phong as its strategic spot in Vietnam, one of the world’s fastest-growing economies. The city is home to three companies under the LG roof. One of them, LG Display Vietnam Hai Phong, manufactures LCD and OLED panels, and LG has to date channeled $4.65 billion into the project. LG Electronics Vietnam Hai Phong and LG Innotek focus on electronics, and supply of electronic components, respectively.

Like Hai Phong, Vinh Phuc is part of Vietnam’s Northern Key Economic Zone, which also includes Hanoi, Bac Ninh, Hai Duong, Hung Yen, and Quang Ninh.

Vinh Phuc Chairman Thanh told Kim that the province was encouraging investments in industrial, hi-tech, educational, and medical projects, among others. The province has 19 industrial parks covering 5,487 hectares approved by the government.

“FDI projects in the province have been able to earn profits in the initial years themselves. Therefore, Vinh Phuc is one of Vietnam’s leading provinces in corporate income tax payments,” he said.

Thanh pledged to give detailed answers at the earliest to the enquiries made by the LG working mission.

Before the LG delegation’s visit to Vinh Phuc, LG Electronics member LG Display said in South Korea that it had secured fresh funding worth $1 billion from global banks including ANZ, HSBC, Citibank and Spain’s CaixaBank, with payment guarantee provided by South Korea’s state-run Export-Import Bank and Korea Trade Insurance Corp.

The new funds would be used to expand OLED panel production in Vietnam, LG Display said.