Will LG’s Vietnamese smartphone line be transformed into a home appliance factory?

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2021-04-24 00:10:21

Yonhap news agency (Korea) said that technology giant LG Electronics announced on April 20 its plan to produce home appliances from smartphone production lines in the North of Vietnam. Previously, the group decided to withdraw from the mobile phone business.

According to the plan, the company will complete the transformation this year and reallocate affected workforce, LG Electronics said in a statement. “The withdrawal from smartphone production is part of LG’s plan to restructure its core product portfolio.“, Chairman of LG Electronics in Vietnam Jung Hai-jin confirmed.

He added: “The closure of the mobile business by LG will not significantly affect LG’s production, sales, and employees in Hai Phong.“.

LG opened its production line in Hai Phong in 2015. This factory focuses on manufacturing home appliances, smart phones and car infotainment components. Currently, Hai Phong factory has more than 16,000 workers. Expected next time, the company will invest more in the factory.

Since the second quarter of 2015, the Korean tech products’ mobile business has been in a loss. Its cumulative operating loss amounted to 5 trillion won ($ 4.4 billion) last year.

Last month, the technology giant announced it was retiring from the smartphone business. At the same time, LG is also in the process of negotiating with a union of workers for its smartphone production line in Brazil.

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