LG Electronics to shift smartphone production to Vietnam

LG Electronics plans to move its smartphone production to Vietnam to cut losses its mobile devices business has suffered since the second quarter of 2017, according to Yonhap News Agency.

The South Korean firm is scheduled to shut its Pyeongtaek plant near Seoul and shift its production line to Vietnam's northern port city of Hai Phong. The company currently manufactures smartphones in Korea, Vietnam, Brazil, and China. Its domestic plants mostly produce premium devices. LG Electronics has struggled in the smartphone market for years under intense competition from Samsung and Apple in the hi-end segment and from Chinese manufacturers in the low-end segment. Last year, its gross sales of mobile devices totaled 1.5 billion USD but net losses amounted to 280 million USD due to rising costs.

Source: VOV5