LG Electronics scales up R&D in Vietnam
LG Electronics Inc. said on March 9 that it is scaling up its research and development operations in Vietnam to respond to a rapidly growing electric vehicle (EV) parts business.
The Korean tech company held a ceremony on March 8 to celebrate the opening of a new entity in Hanoi, in a bid to further nurture the existing auto parts-focused R&D centre which LG has been running since 2016.
LG's Hanoi R&D centre focuses on software development and inspection of in-vehicle products, including telematics, and audio, video and navigation devices.
The company expects the new entity to strengthen LG's R&D infrastructure and competitiveness in Vietnam, and said it will increase the number of developers there by more than 30% to 1,000 by next year.
In 2020, LG also opened an R&D office for auto parts in the central city of Da Nang to enhance its EV-related business and nurture talent. The giant considers the EV parts business one of its most promising growth sectors.
During the fourth quarter, the company reported a significant drop in operating profit due to slowing demand for home appliances, but its EV parts business made a turnaround 10 years after its launch.
In early January, Eun Seok-hyun, President of LG's vehicle component solutions division, said he expects its EV parts business to grow sharply this year to top KRW10 trillion (over US$7.5 billion) in sales.