LG has not found buyers for its Vietnamese smartphone factory

LG Electronics announced its intentions to liquidate the smartphone business in early April. She has a large specialized enterprise in the north of Vietnam, which provides half of the production of smartphones of this brand. Attempts to find new owners for him were unsuccessful.

The fate of the Vietnamese LG enterprise in Haiphong follows the fate of the entire core business, according to the Nikkei Asian Review, citing publications in the Vietnamese media. Since 2015, three large LG enterprises have been operating in the city, which produce not only smartphones, but also household and climate control equipment. They are located in the immediate vicinity of the port, which greatly facilitates logistics. Here the company produced up to 10 million smartphones annually.

Starting next month, LG intends to stop manufacturing smartphones, and by July the entire core business will be liquidated. The company originally hoped to sell the Haiphong facility to Vietnamese manufacturer Vingroup, but it has ample capacity of its own. It is possible that the parties did not agree on the price, since the Korean company asked for $ 88.9 million for the enterprise. If the factory has to be closed, then LG at least hopes to sell the land under it. Thousands of Vietnamese work at the plant, and local authorities have already been notified of LG’s intentions to close the plant in Haiphong.