LG Display to Add to Vietnam Module Plant

LG Display to Add to Vietnam Module Plant
​

LG Display (LPL) is expected to add an additional $750m to its $2.5b investment in its OLED display module assembly plant in Haiphong, Vietnam, making it the biggest direct foreign investor in the country’s 4th largest city.  LGD’s original investment in its module plant was made in 2016, with the new investment, which is expected to create 5,000 jobs (according to the state news agency) and generate ~$5m in fees and taxes.  The additional investment is expected to become income producing by May of this year.
While LGD is the largest investor in Haiphong, Samsung Electronics (005930.KS) has 6 factories in Vietnam, with two of those being their largest smartphone assembly plants.  Along with a $220m R&D center they are building currently, Samsung has invested over $17b in the country, making it the largest foreign investor in the country.  With the average gross salary in Vietnam ~$16,780/year and a similar cost of living, Vietnam represents a location that offers low-cost labor as an alternative to China, where labor and salary levels continue to rise.