South Korean chaebol LG’s investment in Vietnam’s northern coastal city of Hai Phong has amounted to $8.24 billion to date, and the local administration has called on the company to invest more in education-training and healthcare.
Le Tien Chau, a Party Central Committee member and chief of the Hai Phong Party Committee, made the statement at a conference on investment promotion with LG in Seoul on Thursday.
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 affiliates of LG.
Notably, the investment has added nearly $3 billion in the last two years, Chau said. LG accounts for 43% of the city’s export revenue, and has been pushing the socioeconomic growth of the city and Vietnam.
The city leader also emphasized Hai Phong’s efforts to facilitate the chaebol's investments, including construction of traffic infrastructure connecting to industrial parks, building of wharves, investing in renewable energy and the grid, and linking universities with businesses for workforce development.
Other activities include the development of utilities for staff, such as golf courses, hospitals, hotels, and schools.
Further cooperation in education-training, healthcare
For LG Electronics, Le Tien Chau called on the firm to further cooperate with Hai Phong city in building a research & development (R&D) center, conducting innovation and technology transfer activities, constructing houses for workers, linking up with universities and colleges in training, and partnering with primary and secondary schools to teach Korean. He also encouraged the firm to jointly establish a Korean language faculty at Hai Phong University.
For his part, Baek Chan, CEO of LG Electronics Vietnam, said LG Electronics plans to enlarge activities in Vietnam to manufacturing dishwashers and ovens.
Chau suggested LG Electronics collaborate with Hai Phong authorities in researching healthcare technology, vaccine production, manufacturing of medical items, and training of healthcare workers.
Regarding LG Innotek, he proposed the firm continue expanding activities in Hai Phong and transforming the city into its major production hub. Chau also urged LG Innotek to facilitate more Hai Phong businesses to join its supply chain, while affirming that the city would provide the best conditions for LG Innotek’s projects.