LG Display raises investment at Vietnam factory by US$750 million to US$3.25 billion, according to local media.
The project was first approved in April 2016 with an investment of US$2.5 billion.
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Vietnam has awarded a license to South Korea’s LG Display Co. to raise its investment in the country’s northern port city of Haiphong by US$750 million to US$3.25 billion, local media reported on Monday.
The additional investment will help to expand production capacity in the city and would be completed by May and see 5,000 new jobs created, Vietnam News Agency reported. LG did not immediately respond to the email seeking comment from reporter.
According to a report by Vietnam News Agency, LG Display Vietnam Hai Phong’s project was first approved in April 2016 with an investment of US$2.5 billion, specializing in the production of LG Corporation’s OLED and LCD screens, among others. In 2020, it posted US$5.98 billion in sales revenues, a year-on-year surge of 624 percent.
As of early February, Hai Phong had attracted US$823 million in foreign investment, rising six-fold against the amount recorded in the first two months last year. The figure is projected to hit US$910 million by the end of this month.
Vietnam remains an attractive investment destination in Asia, wooing over 300 foreign enterprises to invest or expand their investments in the country during January, the Ministry of Planning and Investment reported.
Foreign direct investment into Vietnam increased 4.1 percent from a year earlier to USD 1.51 billion in January of 2021. Additionally, FDI pledges, which indicate the size of future FDI disbursements, tumbled 60 percent in the year to USD 2.02 billion. The manufacturing and processing sector is set to receive the largest amount of investment (76.4 percent of total pledges) followed by and real estate business (8.9 percent). Singapore was the top source of FDI pledges in the period, followed by China and Hong Kong.
The country’s initial breakthroughs in COVID-19 vaccine production has opened up bright prospects ahead for its economic recovery, especially in terms of the tourism and aviation industries, which have been the hardest hit by the COVID-19 pandemic.
“Along with advantages of cheap labour costs, experts underlined the necessity of supplementing a high-quality workforce and fine-tuning the legal system to further attract FDI in the near future”, said Sophie Dao, Partner of Global Business Services (GBS), an investment consulting firm in Vietnam.