Add $1 billion to LG Innotek's factory project in Hai Phong.

DNHN - On the morning of June 26, 2023, the Hai Phong City People's Committee held a conference to award the Investment Registration Certificate to adjust the capital increase for LG Innotek's project (the period from 2023 to 2025 with a one billion dollar

Mr Le Tien Chau - Member of the Party Central Committee, Secretary of the City Party Committee; Mr Nguyen Van Tung - Deputy Secretary of the City Party Committee - Chairman of the City People's Committee; Mr Le Trung Kien - Member of the Standing Committee of the City Party Committee, Head of the Management Board of Hai Phong Economy; and Mr.

Previously, on June 13, 2023, a city delegation led by Comrade Le Tien Chau - Member of the Party Central Committee, and Secretary of the City Party Committee, met with Mr Leader of LG Group, LG Innotek Group, and held a working session. At the meeting, Investor - LG Innotek Korea and the People's Committee of the city of Hai Phong signed a memorandum of understanding regarding the expansion of investment and production at the Factory in the Industrial Park. Trang Due business.

LG Innotek Vietnam Hai Phong Co., Ltd. was granted an Investment Registration Certificate after the Economic Zone's Management Board urgently consulted the city's policy and granted the company the certificate after only three business days. This demonstrates a strong commitment to reforming administrative procedures and enhancing the business investment climate, thereby assisting Hai Phong in becoming an attractive investment destination.

Mr Le Tien Chau - Member of the Party Central Committee and Secretary of the Hai Phong City Party Committee - made the following statement at the conference: Of the 42 countries and territories registered for FDI in Hai Phong, South Korea ranks first in terms of both the number of projects and the amount of investment capital (with 173 projects, the total registered capital is USD 9.65 billion, accounting for 20.92% of the total investment projects in the city). Typically, LG Complex projects with a total investment capital of USD 7.24 billion accounts for 37.13 per cent of the city's total FDI investment capital. LG Group's cumulative export turnover is 50,6 billion US dollars, the growth rate is 72% per year, and the proportion of exports accounts for approximately 43% of the city's export turnover, thereby contributing to the city's budget. 530 million US dollars, creating nearly 31,000 jobs with an average monthly salary of 13.1 million Vietnamese Dong.

In addition, LG Group always supports the city's social security efforts: supporting IT Stations for training institutions; providing scholarships to universities in the city; contributing $1.4 million to the Fund to support the purchase of vaccines for Covid-19 prevention and control; building houses of gratitude, developing strategic cooperation models for medical examination and treatment for employees; organising blood donation day... The projects of LG Group have actively contributed to the socioeconomic development of the city by promoting the modernization of industry, the application of high technology in production, and the formation of an associate production chain between foreign and domestic firms. At the same time, increase the localization rate of production, develop supporting service industries, and address the city's significant employment needs while maintaining stable worker income.

The success of LG Group in Hai Phong contributes to the strengthening of the cooperation and friendship between Vietnam and Korea, and Korea and Vietnam. The city of Hai Phong values the contributions of LG Group in particular and Korean businesses in general. And today, we continue to observe the interest and confidence of LG Group investors and LG Innotek investors in the city's investment climate.

In response to the determination and expectations of LG Group leaders, the city of Hai Phong pledges to always support and facilitate LG's implementation of effective projects in Hai Phong. The fact that the City Party Standing Committee issued Notice No. 1545-TB/TU on June 20, 2023, agreeing to modify the LG Innotek Hai Phong factory project, only six days after the meeting between the city's Investment Promotion Delegation and LG Innotek in Korea from June 11-14, 2023, demonstrates this commitment. On this basis, on June 21, 2023, the Management Board of Hai Phong Economic Zone amended the Investment Certificate for LG Innotek to expand the aforementioned project with a total investment capital of USD 2,051 billion (an increase of $1 billion compared to the previous certificate).

In the coming years, the city of Hai Phong will continue to vigorously improve the business investment environment; focus on developing infrastructure, particularly transport infrastructure works with regional connectivity; and simultaneously implement solutions to increase the efficiency of attracting high-quality human resources, create favourable conditions to support employees, and guarantee labour resources for investors when implementing projects.

The city is always eager to welcome investors and is dedicated to being an ideal location for investors, particularly Korean investors. In investment promotion, city leaders pay special attention and focus on on-site investment promotion, specifically always taking care and creating the most favourable conditions for existing investors, so that investors can operate most efficiently and have the opportunity to expand their investments. The fact that LG Group initially had only one LG Electronics project with a capital of USD 1.5 billion in the city has since expanded to seven projects with a total investment of nearly USD 10 billion, and LG Innotek's decision to invest an additional $1 billion this period is a result of the investment promotion in place. LG Group is consolidating its strong position in Hai Phong and transforming the city into a key production hub for the Group globally.

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 Business Zone Authority in 2016; the main factory began operations in September 2017. The project's total investment exceeds one billion dollars to manufacture camera module products.

In 2022, the project will generate 78.2 trillion dongs in revenue, 78.2 trillion dongs in exports, 64.7 trillion dongs in imports, and 2.5 trillion dongs in profits, and contribute 163 billion dongs to the state budget. copper. This project employs 3,500 individuals. Since the project's inception, the company has always complied with the law, ensuring environmental protection and employee compensation, and has been awarded certificates of merit by the City People's Committee for production and business achievements, thereby contributing to the socioeconomic development of the city.

The project to increase capital by LG Innotek has brought the city's total FDI capital in the first six months to approximately $1.9 billion, representing 95% of the year's goal. This is a very encouraging result for the investment promotion and foreign investment attraction efforts of the city and the Hai Phong Economic Zone Authority in particular. In addition, it demonstrates LG Group's confidence in Hai Phong's investment climate.

Nam Tri Duc