LG Electronics to Shut South Korea Phone Plant, Move Production to Vietnam
"LG Electronics is relocating its mobile production facility in South Korea, and instead focusing on one of its plants in Haiphong, Vietnam. The company will relocate 750 workers from a smartphone manufacturing factory it is closing in Pyeongtaek to its home appliance plant in Changwon. Not only does LGE want to improve profitability amid a global slump in the smartphone business, but the company also wants to make its business more efficient as demand grows for new home appliances. As the competition with Chinese companies such as Huawei and Xiaomi is getting more intense in the smartphone market, LGE needs to seek ways to lower production costs and Vietnam can help with cheap labor and geographic benefits. However, most of all, it is time for LGE to focus on core competencies in new areas including smart home appliances and vehicle components through a reallocation of resources. Korea will continue to be the hub for its R&D, design and quality assurance for the future." - Liz Lee
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Apr 30, 2019
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Liz Lee
Liz, an Associate Director at Counterpoint Research, has 14+ years of extensive experience in the tech industry. Previously, Liz worked for Samsung SDI focusing on IR (Investor Relations) along with insight-based analysis of emerging tech markets and corporate strategies. She holds an International MBA degree from Waseda Business School.
