Vietnam has awarded a license to South Korea’s LG Display (034220.KS) that will see it raise its investment in the northern port city of Haiphong by $1.4 billion, the city’s People’s Committee said on Tuesday.
The company expects to pocket more 6.5 billion USD in export turnover, contribute additional 25 million USD to the budget and generate 10,000 more jobs.
The investment will boost the company’s OLED display output at the Haiphong factory to 13 million to 14 million units per month, from the current 9.6 million to 10.1 million monthly units, the committee said in a statement, Reuters reported.
The additional $1.4 billion will raise the LG Display investment to $4.65 billion. The company did not immediately respond to a request for comment.
According to local media, the Hai Phong’s project of LG Display Vietnam was first approved in 2016 with an investment of 1.5 billion USD, specializing in the production of LG Corporation’s OLED and LCD screens, among others.
Thanks to an improvement in Hai Phong’s investment environment, the company has increased its investment for four times.
In 2020, it earned over 9 billion USD from exports, created jobs for 14,000 workers and contributed 19.4 million USD to the budget.
The company will increase the output of OLED screens from 9.6-10 million units per month to 13-14 million products per month. It expects to pocket more 6.5 billion USD in export turnover, contribute additional 25 million USD to the budget and generate 10,000 more jobs.
General SuK Myung Su, the company’s Director pledged to make efforts to soon put the project into full operation.
Projects of the Republic of Korea’s LG Corporation in Hai Phong city’s Trang Due Industrial Park include LG Display Hai Phong, LG Electronics Vietnam Hai Phong and LG Innotek Hai Phong, with a combined investment capital of 7.24 billion USD, accounting for 85.2 percent of the total FDI in the industrial park and 37.13 percent of the total FDI in the northern city, the Global Business Services (GBS) citing a report from local media.