DANANG – The LG Vehicle Component Solutions Development Center Vietnam (LGVSDCV), an affiliate of LG Electronics Vietnam Hai Phong Co., Ltd., will put into operation its Research and Development (R&D) Center at the Danang Hi-Tech Park in Danang City next month.
This information was unveiled at the signing ceremony of a memorandum of understanding (MoU) between the Danang Investment Promotion Agency and LGVSDCV that took place on October 6 at the Danang City Administrative Center.
Huynh Lien Phuong, Director of IPA Danang, said the two sides would work with universities and colleges, especially those with information technology faculties, to offer training and jobs to students.
In addition, IPA Danang is committed to supporting LG’s member companies, R&D centers and satellite manufacturers to carry out investment surveys in Danang City.
Meanwhile, according to the MoU, LGVSDCV will prioritize investment in Danang city whenever it needs to expand investments in Vietnam in addition to introducing LG’s member enterprises to Danang City.
“This will be our largest R&D center in Vietnam,” noted Jung Seung Min, Director of LGVSDCV, adding that Danang is a potential market for IT and high technology. Thus, the company wants to tap the potential as part of its long-term development strategy for Vietnam.
According to IPA Danang, as of September 15, 2020, Korean investors had 232 investment projects in Danang city with a combined registered capital of more than US$390 million, making them the fifth largest investors in the central city after Japan, Singapore, the United States and the British Virgin Islands.
Korean investors mainly focus on the service and real estate sectors. Therefore, Danang hopes that high-tech projects such as LG’s will help the central coastal city diversify investment fields from Korean investors to more hi-tech and electronic manufacturing projects.
Reportedly, LG Electronics consists of eight main business areas, including vehicle component solutions development centers that specialize in manufacturing components and researching and developing software solutions for cars such as infotainment systems, vehicle operation and 3G and 4G systems.
LGVSDCV was established in Hanoi in May 2016. As of 2020, the center has 400 employees. The number will go up to 550 in 2022 and 800 in 2024.
By Nhan Tam