LG Innotek invests another 1 billion USD in Hai Phong

LG Innotek invests another 1 billion USD in Hai Phong

Hai Phong City has just held a conference to award the Investment Registration Certificate to adjust capital increase for LG Innotek's project.

It is known that the LG Innotek Hai Phong Factory project by LG Innotek Vietnam Hai Phong Co., Ltd. in Trang Due Industrial Park was granted an Investment Registration Certificate by the Economic Zone Management Board in 2016, in 9/2017 the factory officially came into operation. The project has a total investment of more than 1 billion USD to produce camera module products.

In 2022, the project's revenue will reach VND 78,200 billion, export will reach VND 78,200 billion, import VND 64,700 billion, profit VND 2,500 billion, budget payment will be about VND 163 billion. The project employs 3,500 people.

At this adjustment, the project expands the production scale with a total investment of 1 billion USD, investing in the construction of V3 factory in Trang Due Industrial Park. The factory will put into operation will create more jobs for about 2,600 employees, expected profit: 400 million USD / year and pay the budget of 100 billion VND / year.

With the LG Innotek project, the capital increase has raised the total FDI capital of the city in the first 6 months of the year to approximately 1.9 billion USD, accounting for 95% of the year plan.

In the coming time, the city expects LG Group in general and LG Innotek in particular to continue to invest in expansion, have new projects, operate effectively, contribute more to the development of the city.

On the local side, leaders of Hai Phong city committed to regularly support, create favorable conditions, quickly solve administrative procedures, accompany to remove difficulties and obstacles for businesses, create favorable conditions for Korean partners to deploy project investment smoothly.

According to the Foreign Investment Agency, Ministry of Planning and Investment, in recent years, Korea has always been the leading foreign investment partner in investing in Vietnam, surpassing Singapore with 9,666 projects, with a total registered capital of 81.5 billion USD, of which nearly 11 billion USD (accounting for 14% of the country) is concentrated in Hai Phong City and most of them is located in the economic zone.

The total number of Korean projects in the economic zone is nearly 120 projects, typically such as LG, Heesung, Bluecom, DongYang, Haengsung. Especially among them, LG Group's projects play a very important role, contributing to completely changing the appearance of the economic zone. Specifically, LG Group has invested in Hai Phong 7.24 billion USD (LG Electronics, LG Display, LG Innotek, LG CNS, LG Chemical - 2 projects, LG International) and 50 other satellite enterprises.

LG Group's accumulated export turnover is 50.6 billion USD. The growth rate is 72% per year, an average increase of 1.71 billion USD per year. LG's export share always accounts for about 43% of the city's export turnover. To date, LG has contributed $530 million to the city's budget. In addition, the number of employees currently working at LG Group companies is nearly 31,000 employees. Of which, 30,338 Vietnamese workers and 406 foreign workers. The average income is from 13.1 million VND/person/month.

In social security work, LG Group has addressed information technology disparities by supporting IT generating stations for training institutions; providing scholarships to universities in the city; contributed 1.4 million USD to the Fund to support the purchase of vaccines against the Covid-19 epidemic; building volunteer houses, building strategic cooperation models for medical examination and treatment for workers; organizing a blood donation day with the participation of nearly 400 officials, employees, experts (LG Innotek) ...

Up to now, Hai Phong Economic Zone Management Board has attracted nearly 24 billion USD of FDI, if including domestic investment and conversion, the economic zone has attracted nearly 37 billion USD (always accounting for more than 90% of FDI attraction of the whole city). The average import-export turnover of the economic zone always reaches 12.3 billion USD / year, accounting for 80% of the total export turnover of the city, annually paying the budget about 5,000 billion VND.