LG establishes R&D subsidiary in Vietnam
With its new subsidiary, LG Electronics aims to strengthen the company's rapidly growing electric vehicle-related business.
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 are seen as a key technology for future mobility that includes telematics and Audio, Video, Navigation (AVN) solutions, but also other driving-related information and entertainment functions. LG has recorded a double-digit share of the IVI market for two years straight.
The company has continuously strengthened its R&D capabilities for automotive parts in Vietnam since it established the Hanoi R&D Center – under its Vietnam Production Corporation – back in 2016. The company later created an additional R&D branch office in Da Nang in 2020.
The new R&D subsidiary is part of the company's strategy to solidify its position in the global auto parts market and take pole position in the autonomous driving era. According to LG, the company possesses the technological capabilities, scale and experience to accelerate the arrival of next-generation mobility solutions via 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.
LG says that it also aims to increase the workforce at the newly formed LG Electronics Development Vietnam, Ltd., boosting the number of skilled professionals by more than 30%, from 750 to 1,000 employees, by 2024.
“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, in the press release. “By boosting our infrastructure to the next level, LG will continue to further enhance our capabilities and develop next-generation, innovative mobility solutions.”