LG Electronics in talks with Vietnam’s Vingroup to sell smartphone business

Vingroup is a conglomerate in Vietnam engaged in various fields of business, including mobile phones.

LG Electronics would like to sell its smartphone business to Vingroup Co.

Vingroup is said to have offered the most attractive offer among companies that covet LG Electronics’ smartphone business.

Vingroup is a large conglomerate in Vietnam with a market capitalization of US $ 16.5 billion at the end of 2020. It represents 14% of the total market capitalization of Vietnamese listed companies. The company is active in various fields of activity, including hospitality and tourism, real estate, distribution, construction, automotive and mobile phones, but its presence is still weak on the global stage.

Vingroup entered the smartphone business in 2018. It produced smartphones under an Original Design Contract (ODM) with LG Electronics. Currently, it is the third largest producer of smartphones in Vietnam after Samsung Electronics and Oppo.

If it acquires the smartphone business of LG Electronics, it can take a significant leap forward. LG’s reputation, advanced technologies and sales channels can bring innovation to Vingroup.

Although LG Electronics is looking at various options under the command of LG Group Chairman Koo Kwang-mo, the company has reportedly decided to sell its smartphone business piece by piece, as selling in its entirety is virtually difficult.

Vingroup is said to be interested in taking over LG Electronics’ smartphone business in the United States. It is seeking to gain a foothold in the American market through the acquisition. LG Electronics’ share of the North American smartphone market was 12.9% in 2020.

Meanwhile, LG Electronics chairman Kwon Bong-seok emailed employees on Jan.20 to reassure them of their job security, but a workforce restructuring seems inevitable regardless of the overhaul. MC business division.

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