Q1 revenue of LG Electronics’s Vietnam factories fall 12% to $2 bln

LG Electronics’s factories in Vietnam, both in the northern port city of Hai Phong, recorded a total revenue of KRW2.84 trillion ($2.05 billion) in the first quarter of this year, down 12.3% year-on-year.

The two factories posted a combined profit of KRW133.3 billion ($96.17 million) during the period, down 20.7% year-on-year, according to the South Korean chaebol’s Q1 financial statements.

Specifically, LG Innotek Vietnam Hai Phong (LGITVH), which specializes in camera module production, earned a revenue of KRW1.15 trillion ($834 million) and profit of KRW66.9 billion ($48.27 million), down 35.6% and 30.8% year-on-year, respectively.

LG Electronics Vietnam Hai Phong (LGEVH), which mainly manufactures electronics and home appliances, generated a revenue of KRW1.68 trillion ($1.22 billion), up 16.7% year-on-year, and a profit of KRW66.4 billion, down 7.1%.

In terms of profitability, LGITVH and LGEVH ranked as the fifth and sixth most profitable among LG Electronics's global facilities, respectively.

At a meeting with the Haiphong authorities last month, LG Electronics said that it suspended plans to expand its microwave and refrigerator production at its plant in the city due to U.S. tariffs. The pause reportedly affected 400 workers at the LG Electronics Hai Phong plant.

As of April 2024, LG’s investment in Vietnam, mostly in the northern coastal city of Hai Phong, had reached $8.24 billion.

Starting with $1.5 billion in 2013, the investment includes $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.

In November 2024, LG Display received an investment registration certificate to invest $1 billion more in Hai Phong.