LG Electronics Establishes Vietnam R&D Subsidiary to Strengthen Automotive Business

Vietnam R&D Center Upgraded to Corporation
Expecting Momentum in 3 Major Electric Vehicle Parts Businesses

LG Electronics is strengthening its automotive electronics business by officially upgrading its research and development (R&D) center in Vietnam to a corporation.

On the 8th, LG Electronics held the 'Vietnam R&D Corporation Opening Ceremony' in Hanoi, Vietnam. Key figures including Nguyen Le Hung, Deputy Director of the Advanced Technology Department at the Vietnam Ministry of Science and Technology, Oh Young-joo, Ambassador of the Republic of Korea to Vietnam, and Lee Sang-yong, Head of LG Electronics VS Research Institute (Executive Vice President), attended to celebrate the establishment of the corporation.

LG Electronics Vietnam R&D Corporation is responsible for software development and verification of in-vehicle infotainment (IVI) systems. Infotainment is a core technology for future mobility and a major business of LG Electronics' VS Business Division. It is a system that provides driving-related information and entertainment functions, with telematics and audio-video-navigation (AVN) as key products.

From the second person on the left in the photo, Jeong Seung-min, Head of LG Electronics Vietnam R&D Corporation (Responsible), Oh Young-joo, Ambassador of the Republic of Korea to Vietnam, and Lee Sang-yong, Head of LG Electronics VS Research Institute (Executive Director), attending the opening ceremony of the R&D Corporation held on the 8th in Hanoi, Vietnam / Photo by LG Electronics

LG Electronics expects that the establishment of this R&D corporation will strengthen the VS Business Division's in-vehicle infotainment systems. Along with this, the automotive lighting systems of its subsidiary ZKW and the electric vehicle powertrain of the joint venture LG Magna e-Powertrain, it aims for balanced growth across these three core businesses. Through this, the company plans to solidify its position in the global automotive parts market and lead the upcoming era of autonomous vehicles.

LG Electronics will further strengthen business operations by securing local specialized personnel. The number of automotive parts development personnel at the Vietnam R&D Corporation, currently about 750, will be increased by more than 30% to around 1,000 by next year. Additionally, the industry-academia cooperation program, which was conducted with universities in Da Nang and nearby areas, will be expanded to universities located in Hanoi.

Lee Sang-yong, Head of LG Electronics VS Research Institute (Executive Vice President), said, “We will further enhance the R&D infrastructure and capabilities for developing and verifying next-generation automotive parts,” adding, “We will continuously introduce automotive electronics solutions that provide differentiated value to global automaker customers.”

According to statistics from market research firm Strategy Analytics, LG Electronics ranked first in the telematics market with a 23% share as of the third quarter of last year. In the AVN market, it has recorded double-digit market shares since 2021.

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