Vietnamese subsidiaries of LG Electronics reported higher sales revenues but lower post-tax profits in the first half of this year, according to the South Korean giant’s financial statements.
LG Electronics Vietnam Haiphong recorded a sales revenue of KRW2,599.96 billion ($1.96 billion) in H1, up 26.1% year-on-year, but post-tax profit for the period fell 5.4% to KRW84.71 billion ($64 million).
The firm’s sales revenue was the third-highest among all major LG subsidiaries, behind LG Innotek (based in South Korea) with KRW8,075.473 billion ($6.1 billion) and LG Electronics U.S.A. (based in the U.S.) with KRW6,923.45 billion ($5.2 billion).
Its post-tax profit was among the highest, too, after LG Electronics U.S.A., LG Electronics India Private Limited (based in India), and LG Electronics Mlawa Sp. Z.O.O. (based in Poland).
LG Innotek Vietnam Haiphong posted sales revenue of KRW1,516.39 billion ($1.2 billion) in the six-month period, down 7.4% year-on-year, while its post-tax profit shrank to one-third of that last year to KRW38.8 billion ($29.3 million).
Overall, the sales revenues of LG Electronics’ two production subsidiaries in Vietnam rose 11.3% year-on-year to KRW4,116.35 billion ($3.1 billion), but their post-tax profit decreased 23.8% to KRW97.84 billion ($73.9 million).
Globally, LG Electronics recorded sales revenue of KRW40,414.33 billion ($30.52 billion) in H1, edging down 0.05% year-on-year. Its post-tax profit reached KRW741.8 billion ($560.2 million), or about half of that in 2022.
South Korea is a leading foreign investor in Vietnam, led by Samsung (almost $20 billion) and LG ($11 billion). Deputy Prime Minister Tran Luu Quang urged South Korean Ambassador Choi Youngsam to push electronics giant LG to invest in developing an R&D center in Hai Phong city at a meeting in September. He also said that Vietnam will continue to strengthen its investment climate in order to make it easier for foreign investors to effectively implement projects in Vietnam.
In June, LG Innotek, the electronics component arm under South Korean giant LG, said it would invest an additional $1 billion in Hai Phong, doubling its investment in the northern coastal city to $2.05 billion.