In a landmark move set to deepen economic ties between Vietnam and South Korea, LG Display has been granted an investment license by Vietnamese authorities to increase its investment in the Haiphong Economic Zone by $1 billion. This new inflow will further amplify the company’s OLED display output in its Haiphong facility, which has become a critical production hub for LG Display in recent years.
With this additional investment, LG Display’s total capital commitment in Vietnam now stands at $5.65 billion. This surge in investment underscores the company’s strategic focus on Vietnam as a vital player in its global supply chain for high-tech OLED displays, a growing market segment fueled by the increasing demand for advanced screen technologies in devices ranging from smartphones to automotive displays.
The increased capital infusion is a direct response to rising global demand for OLED screens, a market LG Display has been instrumental in advancing. OLED (organic light-emitting diode) technology is sought after for its superior display quality, including vibrant color accuracy, flexible design capabilities, and energy efficiency compared to traditional LCD screens. By expanding production in Haiphong, LG Display aims to consolidate its leadership in OLED technology and secure a larger share of this lucrative market.
The expansion project in Haiphong will involve scaling up production lines and optimizing existing infrastructure to increase the factory’s output capacity. As part of this process, LG Display is expected to install cutting-edge technology and machinery to ensure high efficiency and product quality. This move aligns with the company’s goal of making its Haiphong plant a premier production facility in its global network.
According to the Haiphong Economic Zone Authority, this latest investment is expected not only to ramp up OLED output but also to attract other high-tech suppliers and service providers to Haiphong, effectively establishing the city as a tech-manufacturing center in Southeast Asia.
LG Display’s commitment to expanding its investment highlights Vietnam’s growing importance as a destination for high-tech manufacturing. Over the past decade, Vietnam has transformed from a low-cost manufacturing destination to a hub for advanced manufacturing, with multinationals like LG, Samsung, and Intel establishing significant operations in the country.
By intensifying its investment, LG Display is reinforcing Vietnam’s reputation as a stable and advantageous location for high-tech manufacturing, even amid global supply chain disruptions. The company’s expansion is expected to stimulate economic growth by creating jobs, boosting local suppliers, and attracting further foreign direct investment (FDI).
The investment also aligns with Vietnam’s broader economic objectives, which include boosting technology and manufacturing sectors to drive higher value-added exports. According to the Ministry of Planning and Investment, high-tech manufacturing has been one of the fastest-growing sectors in the country, and foreign investments like LG Display’s expansion play a crucial role in advancing this trajectory.
One of the significant benefits of LG Display’s increased investment will be job creation. Currently, the Haiphong factory employs thousands of local workers, and with the expansion, the company is expected to create additional jobs, spanning from skilled manufacturing positions to engineering and managerial roles. This expansion will also enhance local expertise in high-tech manufacturing processes, which can have a lasting impact on the regional economy.
Vietnam’s labor market has shown a steady supply of skilled workers for the tech sector, thanks to government initiatives aimed at improving education and training programs in science, technology, engineering, and mathematics (STEM). By creating more employment opportunities, LG Display’s investment aligns well with Vietnam’s focus on workforce development, especially in sectors requiring technical skills and expertise.
This collaboration between a prominent foreign investor and the local workforce not only improves the quality of employment but also raises the standard of living for thousands of families in Haiphong and neighboring provinces. In addition, increased employment may stimulate related sectors, such as housing, retail, and transportation, as new employees settle into the area.
South Korea is one of Vietnam’s largest foreign investors, with companies like Samsung, SK Group, and LG leading significant projects in the country. LG Display’s decision to raise its capital commitment underscores the deepening economic relationship between the two countries. Bilateral trade between Vietnam and South Korea has surged over the years, facilitated by the two nations’ shared economic vision and trade agreements.
This collaboration has strengthened ties beyond economic interests, fostering diplomatic and cultural exchanges as well. For Vietnam, South Korean investments have been instrumental in transforming its manufacturing landscape. For South Korea, Vietnam provides a strategic location with competitive labor costs, proximity to other major markets in Asia, and stable governance.
The Vietnamese government has consistently worked to make the country more appealing for foreign investors by implementing business-friendly reforms, improving infrastructure, and offering incentives. LG Display’s expanded presence further solidifies South Korea’s position as a major partner in Vietnam’s economic landscape and symbolizes the shared growth ambitions of both countries.
