LG’s second $1.5 billion facility to kick off in early May

April 29, 2016 | 16:35

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Vietnam will see an impressive soar in its foreign direct investment capital in May with South Korean LG Group’s new $1.5 billion facility to be licensed, among fears that the country may break its current rising trend in FDI.

On May 6, LG Display will organise a ground-breaking ceremony of the $1.5 billion hi-tech screen (OLED) production factory in the northern port city of Haiphong’s Trang Due industrial park, according to a source from the Haiphong Economic Zones Management Authority (Heza).

On the same day, Heza will grant the investment certificate for the investor.

On April 5, the Haiphong People’s Committee and LG Display signed a Memorandum of Understanding (MOU) for the latter to implement OLED production facility. It is the second $1.5 billion facility of LG Group in the northern port city’s Trang Due IP.

The group expected to receive the city’s support in licensing its new investment certificate and ensuring water supply for the new facility so that the project’s construction can be implemented on schedule.

“Once the factory comes into operation, it will play an important role in the city’s socio-economic development. The city commits to providing preferential conditions for the investor during the construction process. Besides, it is the first time at the IP that the investor receives support to construct accommodations for its employees,” said Le Van Thanh, Chairman of the Haiphong People’s Committee.

Thanh also said LG could consider to sell 20 per cent of its OLED output from the new facility on the domestic market.

In April 2015, LG inaugurated its 800,000 square metre electronic manufacturing complex in Trang Due IP, which specialises in producing price-competitive electronic goods, including televisions, mobile phones, washing machines, and air conditioners. The total sum of $1.5 billion invested in the complex will be disbursed between 2015 and 2028.