LG Electronics intensifies auto part R&D in Vietnam

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LG Electronics intensifies auto part R&D in Vietnam

Korea’s ambassador to Vietnam Oh Young-ju, third from left, and Lee Sang-yong, LG Electronics senior vice president of the vehicle solution research center, during an establishment ceremony in Hanoi, Vietnam on Wednesday [LG ELECTRONICS]

Korea’s ambassador to Vietnam Oh Young-ju, third from left, and Lee Sang-yong, LG Electronics senior vice president of the vehicle solution research center, during an establishment ceremony in Hanoi, Vietnam on Wednesday [LG ELECTRONICS]

 
LG Electronics is ramping up research and development (R&D) for its auto part business in Vietnam, the electronics maker said Thursday.
 
The Korean company established a legal entity in Hanoi, Vietnam, dedicated to automotive parts R&D.
 
The new entity will develop automotive software for in-vehicle infotainment systems.
 
An infotainment system involves technologies and services like entertainment services, navigation and telematics, a system to store and transmit vehicle data.
 
LG Electronics plans to increase the number of research personnel at its existing Vietnamese R&D center from the current 750 to 1,000 by next year to scale up its R&D operations in the country.
 
The company first established an auto part R&D center in Hanoi in 2016 as a unit under LG's local production entity and established a second center in Da Nang in 2020.
 
LG Electronics’ auto part business has been boosted by strong electric vehicle (EV) demand worldwide.
 
While the company posted a 12.6 percent drop in operating profit to 3.5 trillion won ($2.6 billion) in 2022, its Vehicle Solution division for automotive parts swung to black to 169.6 billion won in operating profit, from the previous year’s loss of 934 billion won.
 
The profit marks the first full-year profit since 2015 for the relatively young business division.
 
LG Electronics claimed the largest share in the global telematics market with 23 percent in the third quarter last year, according to LG Electronics citing data from Strategy Analytics.
 
LG Electronics’ vehicle component business accumulated “backlog orders worth 80 trillion won by the end of 2022, and the figure is expected to reach 90 to 100 trillion won by the end of 2023,” said Daishin Securities analyst Park Kang-ho on Thursday.
 
The establishment ceremony was held on Wednesday in Hanoi.
 

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]
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