LS Electric Enters Vietnam Smart Factory Market... Collaboration with Local State-Owned Enterprise

Binsuong Industrial Complex Manufacturing Company Solution Business
Responsible for Construction Project from Supply Contract to Application

LS Electric announced on the 15th that it is making a full-scale entry into the Vietnamese smart factory solution market by partnering with Becamex, a major Vietnamese development company.

LS Electric recently signed a memorandum of understanding (MOU) with Becamex at the Becamex WTC Tower in Binh Duong Province, Vietnam, to expand the smart factory solution business targeting companies located in industrial complexes. The event was attended by Koo Ja-kyun, Chairman of LS Electric, and Nguyen Van Hung, Chairman of Becamex, who discussed cooperation plans based on the digital transformation of Vietnamese manufacturing and eco-friendly policies.

According to the agreement, Becamex will identify companies in industrial complexes that require smart factory solutions and be responsible for solution marketing. LS Electric will take full responsibility for providing automation solutions for the entire smart factory construction process, from implementation to operation. They also plan to expand cooperation in the renewable energy sector, including energy storage systems (ESS).

Becamex is the largest state-owned enterprise in Binh Duong Province, Vietnam, providing a one-stop service integrating industrial complex and urban development. It is actively promoting industrial complex development and smart city projects to make it easier for Vietnamese manufacturers to undergo digital transformation.

LS Electric has already developed its Cheongju plant as a successful example of smart factory technology. In 2021, it was recognized for its outstanding ICT capabilities by being selected as a Lighthouse Factory by the World Economic Forum (WEF). Based on this technology, LS Electric plans to cooperate with Becamex to provide smart factory solutions for local Vietnamese companies.

On the 14th, at the Becamex WTC Tower in Binh Duong Province, Vietnam, Koo Ja-kyun, Chairman of LS Electric (fourth from the left in the back row), Nguyen Van Hung, Chairman of Becamex (fifth from the left in the back row), Jo Wook-dong, Head of LS Electric Global Business Division (left in the front row), and Pham Ngoc Tuan, General Manager of Becamex (right in the front row), posed for a commemorative photo after signing a Memorandum of Understanding (MOU) to create business opportunities for smart factory solutions with Becamex, the largest local state-owned enterprise, and companies located in the industrial complex.
Photo by LS Electric

Vietnam is one of the fastest-growing manufacturing countries in the world, and its factory automation market is steadily growing as well. The Vietnamese automation market, which was approximately KRW 3.7092 trillion in 2022, is expected to grow at an average annual rate of 8.8% to reach about KRW 6.138 trillion by 2028. LS Electric plans to help Vietnamese manufacturers adopt digital transformation and eco-friendly technologies and to actively enter the automation market.

At the recently held ‘2024 ELECS (Electric Energy Show),’ Pham Minh Chinh, the third-ranking official in Vietnam, visited the LS Electric booth and showed great interest in automation technology. This aligns with the Vietnamese government’s policy to expand factory automation, and LS Electric sees this as an opportunity to accelerate its market entry.

LS Electric is a first-generation Korean company that entered the Vietnamese market in the mid-1990s. It holds more than 35% of the Vietnamese power equipment market share and has maintained the number one position in the Vietnamese power equipment market since 2013. Through this cooperation, LS Electric aims to enhance the automation competitiveness of Vietnamese manufacturers and contribute to the revitalization of industrial complexes developed by Becamex. Through this, it plans to expand its market share in the automation market while leading industrial innovation in Binh Duong Province.

Jo Wook-dong, Executive Director of LS Electric, said, “Through this memorandum of understanding, we will accelerate the digital transformation of Vietnamese manufacturing and contribute to building a sustainable industrial ecosystem,” adding, “In the long term, we plan to target the ASEAN market with Vietnam as a base.”

Jo also stated, “Vietnam is growing as an important market leading digital innovation and eco-friendly manufacturing in Southeast Asia, and this cooperation will be a significant milestone for Vietnamese manufacturers to achieve the RE100 (Renewable Energy 100%) goal,” adding, “We will actively support the establishment of a sustainable production environment through LS Electric’s smart factory solutions and eco-friendly technologies.”

This content was produced with the assistance of AI translation services.