Local conglomerate Vingroup is looking like the largest bidder for LG Electronics’ smartphone production line to support plans of setting foot in the US.
|LG's smartphone business wished to aid Vingroup's penetration to the US |
The Asian media is in a huge stir over the rumoured take-over deal in the making between the Vietnamese giant and LG Electronics, the fourth biggest “chaebol” in South Korea.
Newswire Business Korea reported that LG Electronics wants to sell its smartphone business to Vingroup as soon as it makes an exit from the segment in the US. The Vietnamese giant was also reported to submit the most attractive offer for the deal, but both sides have remained quiet about a possible deal so far.
However, the information is in line with Vingroup’s announcing late last year plans to enter the US. In an interview with CNN, the group’s vice chairwoman Le Thi Thu Thuy said that the US is a very promising market and the group “will initially focus resources on investing there, then steadily expand to other markets.”
According to the company, the nation is the strictest market in the world. Therefore, once it gains success there, targeting nearby markets will be easier.
The US smartphone market is led by the two global giants Apple and Samsung with the market shares of 40 and 30 per cent, respectively, following data published by Counterpoint. The statistics also showed that as of the end of the third quarter last year, LG occupied about 13 per cent of the market.
Vingroup also stated that one of its main directions in 2021 is to focus on developing 5G-smartphones which have been in high demand in the US, especially after the appearance of Apple's iPhone 12 series.
In the local market, Vingroup has also accelerated plans to release its 5G smartphones Vsmart Aris 5G. For now, the behemoth accounts for 12.7 per cent of the market, ranking third after Samsung and Oppo, according to GfK.