IFC considers $200m loan for LG Innotek Vietnam

October 30, 2024 | 17:04

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The International Finance Corporation (IFC), a member of the World Bank Group, is considering a loan of up to $200 million to LG Innotek Vietnam Haiphong Co., Ltd.

IFC considers $200m loan for LG Innotek Vietnam

According to disclosure on October 24, the proposed IFC investment is a sustainability-linked loan to LG Innotek Vietnam Haiphong Co., Ltd., a wholly owned subsidiary of LG Innotek Co., Ltd.

The loan will be used to expand the company’s production capacity for smartphone camera modules as part of the approximately $1 billion capital expenditure scheme to build a new factory in Trang Due Industrial Park, Haiphong. The proposed sustainability-linked loan will help reduce greenhouse gas (GHG) emissions.

At the project level, the project will contribute to GHG emissions reduction and create many new jobs. At the market level, the project will contribute to enhancing Vietnam’s competitiveness through export capacity expansion and knowledge spillovers.

LG Innotek Vietnam Haiphong operates two factories in Trang Due Industrial Park within Dinh Vu-Cat Hai Economic Zone in Haiphong. The company intends to build a third factory at the same location in Haiphong before 2027 to increase its manufacturing capacity.

Haiphong People's Committee approved an increase in capital for the project in 2023 to $1 billion, so the proposed IFC loan will bring the total invested in the project to $2 billion.

Headquartered in Seoul, South Korea, LG Innotek is one of the top electronic components manufacturers in the world for optic solutions for smartphones, substrates for semiconductors, and automotive components.

LG Innotek in Haiphong invests further $1 billion

LG Innotek, a producer of core components for mobile devices, automotive displays, and semiconductors, will invest $1 billion into building a new manufacturing facility for advanced smartphone camera modules and other optical products in the northern port city of Haiphong.