LG Electronics’s major Vietnam factories report revenue growth of 23% in 2023

Two Vietnamese subsidiaries of South Korea’s LG Electronics have posted a combined revenue of KRW10,897.1 billion ($7.95 billion) in 2023, up 23.4% year-on-year, according to the South Korean chaebol’s latest financial statements.

LG Innotek Vietnam Hai Phong made a revenue of KRW5,763.7 billion ($4.2 billion), up 32.6% year-on-year, with post-tax profit of KRW228.7 billion ($166.9 million), up 56.6%.

LG Electronics Vietnam Hai Phong made a post-tax profit of KRW150.3 billion ($109.7 million) on a revenue of KRW5,133.3 billion, down 14.8% but up 14.5% year-on-year, respectively.

The total post-tax profits of the two major Vietnamese subsidiaries of LG reached KRW379 billion ($276.6 million), up 17.6% year-on-year.

The sales figures of the two Vietnamese factories ranked third and fourth on LG Electronics’s global list, behind its facilities in South Korea and the U.S.

Besides, LG Display Vietnam Haiphong Company, under LG Display, reported a net income of KRW159.1 billion ($114.9 million) in Vietnam in 2023. The figure was up 41.8% year-on-year, according to LG Display’s performance review for 2023. Last year, LG Display Vietnam Haiphong recorded sales of KRW2,773 billion ($2 billion), up 3.8% year-on-year.

In April, Hai Phong city said LG’s investment in the city had amounted to $8.24 billion. Starting with $1.5 billion in 2013, the investment included $7.24 billion conducted by LG itself, featuring LG Electronics, LG Display, LG Innotek, LG CNS, LG Chemical, and LG International; and $1 billion conducted by 50 of its affiliates.

For LG Electronics, Le Tien Chau, a Party Central Committee member and chief of the Hai Phong Party Committee, proposed further cooperation. The suggestion included building a research & development center, conducting innovation and technology transfers, constructing houses for workers, linking up with universities and colleges for training, and partnering with primary and secondary schools to teach Korean.