Lg Establishes R D Subsidiary In Vietnam


New Subsidiary To Take Key Role in Developing, Verifying IVI System Software to Strengthen Rapidly Growing Vehicle component Solutions Business



LG Electronics’ (LG) R&D centre in Vietnam has officially become an R&D subsidiary in a move aimed at strengthening LG’s rapidly growing electric vehicle related business. The opening ceremony for the new subsidiary was held recently in Hanoi, Vietnam, and attended by Nguyen Le Hung, deputy director of High Technology Department of Ministry of Science and Technology in Vietnam, Oh Young-ju, ambassador at Embassy of the Republic of Korea in Vietnam, and Lee Sang-yong, senior vice president of R&D Laboratory at LG Electronics Vehicle component Solutions (VS) Company.

The Vietnam-based R&D subsidiary will be tasked with developing and verifying software for in-vehicle infotainment (IVI) systems, which have been a major focus for the company’s mobility business. IVI systems, a key technology for future mobility that includes telematics and Audio, Video, Navigation (AVN) solutions, simultaneously provide a variety of driving-related information and entertainment functions.

According to market research firm Strategic Analytics, LG is leading the global market for IVI systems with a 23 percent share as of the third quarter of 2022. The company has now recorded a double-digit share of the IVI market for two years consecutively.

LG has continuously strengthened R&D capabilities in Vietnam for automotive parts since it established the Hanoi R&D Centre under its Vietnam Production Corporation in 2016. With the success of the first centre, the company created an additional R&D branch office in Da Nang in 2020.

The new R&D subsidiary is part of LG’s strategy to solidify its position in the global auto parts market and lead the fast-approaching autonomous driving era. Based on the balanced growth of its three core businesses – IVI systems, lighting and headlight systems via ZKW Group and e-powertrains developed through a joint venture between LG and Magna – the company now possesses the technological capabilities, scale and experience to accelerate the arrival of next-generation mobility solutions.

LG also aims to increase the workforce at the newly formed LG Electronics Development Vietnam, Ltd., boosting the number of skilled professionals more than 30 percent, from 750 to 1,000 employees, by 2024.

Since 2021, LG has been operating programs in collaboration with Vietnamese universities to help foster talented, young locals seeking careers in software development. These include the awarding of academic scholarships and guaranteeing employment for high-performing students at universities in Da Nang and neighboring cities. The program is slated to expand to universities in Hanoi this year.

“We will continue to provide mobility solutions that deliver differentiated value to our global auto industry customers,” said Lee Sang-yong, senior vice president of R&D Laboratory at LG’s VS Company. “By boosting our infrastructure to the next level, LG will continue to further enhance our capabilities and develop next-generation, innovative mobility solutions.”


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