MoU signed between Kinh Bac and LG for latter’s Haiphong expansion

September 29, 2014 | 09:35

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Vietnam’s leading industrial park developer Kinh Bac City Development Company signed a memorandum of understanding with LG Electronics for the investment expansion of the South Korean electronics giant in the northern port city of Haiphong.

The memorandum of understanding (MoU) was signed last week during an investment promotion conference held by the Haiphong Municipal People’s Committee in South Korea. Under the MoU, LG Electronics will lease an additional 50 hectares of land in Kinh Bac’s Trang Due Industrial Park.

LG Electronics previously leased 40 hectares of land in the Trang Due Industrial Park to build a $1.5 billion electronics manufacturing complex. The manufacturing facility will be operational next month, producing home appliances, smartphones and electronics components for the car and electronics industries. The South Korean electronics giant will invest $510 million to develop the first phase of this complex during 2013-2017. The second phase, worth $990 million, will be built over six years, from 2017 to 2023. The complex will serve both domestic and international markets, according to the investment certificate.

The investment promotion conference last week also attracted 50 South Korean companies, which are looking for opportunities to act as suppliers for LG Electronics in Haiphong.