LG Group enters Vietnam

LG Group enters Vietnam

HANOI (AFP): South Korea's LG Group has received a licence to build a US$7.7 million joint-venture factory to produce water pumps in the northern Vietnamese port of Haiphong, a company executive said yesterday.

Lee Sang-Mo, regional managing director of LG International Corp. which oversees all LG investments abroad, said LG Electronics Co. Ltd. will take a 70 percent stake in the plant.

Mechanical Engineering and Import Export Co., under the Ministry of Industry, would take 30 percent, he said.

The project is LG's 11th investment in Vietnam where it is involved in projects worth about US$250 million, Lee said.

He said the group was still interested in investing in the proposed Dung Quat oil refinery, but declined to give details.

LG's other major investments in Vietnam include television assembly, fertilizers and telecommunications equipment.