LG Display and Innotek profits increased sharply
The parent company's financial report has just announced the business results of 2 LG factories in Vietnam.
Although LG Electronics has 4 units in Vietnam, the company only publishes data for LG Electronics Vietnam Hai Phong - LGEVH (main field: manufacturing and trading of electronic products) and LG Innotek Vietnam Hai Phong – LGITVH (main field: manufacturing and trading of electrical/electronic materials).
Accordingly, LG Electronics Vietnam Hai Phong achieved revenue of 5.133 billion won (about 95.405 billion VND), an increase of 14,5% compared to 2022. The company's revenue is only inferior to LG Innotek (Korea), LG Electronics USA ( USA), LG Innotek Vietnam Hai Phong.
However, LGEVH's profit decreased by 14,8% to more than 150 billion won (about 2.788 billion VND).
By the end of 2023, total assets of LG Electronics Vietnam Hai Phong are at 1.996 billion won (37.099 billion VND), of which liabilities account for more than 993 billion won (18.456 billion VND).
As for LG Innotek Vietnam Hai Phong, the unit achieved revenue of 5.763 billion won (107.115 billion VND), an increase of 32,6% compared to 2022.
During the period, LGITVH's profit increased 56,64% to 228,7 billion won (4.250 billion VND). By the end of 2023, LG Electronics still holds 40,8% of LG Innotek Vietnam Hai Phong's capital.
Total assets of LG Innotek Vietnam Hai Phong reached 2.175 billion won (40.426 billion VND), of which liabilities accounted for more than 1.283 billion won (23.846 billion VND).
Thus, for the whole year 2023, two LG Electronics factories in Vietnam recorded a total revenue of 10.896 billion won (202.520 billion VND); while total profit reached 378,7 billion won (7.038 billion VND).
Besides the above factories, the Korean corporation also has another unit in Vietnam under LG Display, LG Display Vietnam Hai Phong company.
It is known that LG Display Vietnam Hai Phong recorded a revenue increase of nearly 4% to 2.773 billion won (51.540 billion VND) in 2023. Meanwhile, the net profit of this unit is at 159,1 billion won (2.957 billion VND) VND), a sharp increase of 41,8% compared to 2022.
With this result, LG Display Vietnam has achieved the second highest profit and third highest revenue among all LG Display subsidiaries.
LG continues to promote investment in Vietnam
LG Group initially had only 1 LG Electronics project with a capital of 1,5 billion USD in Hai Phong City, but now it has developed into 7 projects with a total investment of tens of billions of USD.
In the latest move, LG Innotek Hai Phong factory has adjusted to increase capital by 1 billion USD for the period 2023 - 2025, thereby increasing the total investment of the project to more than 2 billion USD.
Currently, LG Group has attracted investment in Hai Phong of 8,24 billion USD, of which, 7 projects with investment capital of 7,24 billion USD (LG Electronics, LG Display, LG Innotek, LG CNS, LG Chemical (2 projects), LG International) and 50 satellite businesses with a total investment capital of nearly 1 billion USD.
LG Group's accumulated export turnover is 50,6 billion USD. Growth rate is 72%/year, an average annual increase of 1,71 billion USD. LG's export proportion always accounts for about 43% of the export turnover of the entire Hai Phong city.
Accumulated LG has contributed 530 million USD to Hai Phong City's budget, an average of 66 million USD each year.
Besides, the current number of employees working at LG is nearly 31.000 employees. Of these, 30.338 are Vietnamese workers and 406 are foreign workers. Average income reached 13,1 million VND/person/month.
Not only that, businesses belonging to the LG Group including: LG Electronics, LG Innotek also recently signed a memorandum of cooperation with Hai Phong on supporting the city in building a smart city model and committed to continue continue to expand project investment here.
