LG Electronics vows to relocate smartphone production line to Vietnam by September

[Yonhap Photo]

SEOUL -- LG Electronics vowed to complete the relocation of its loss-making smartphone production line to Vietnam by September, saying production in the Southeast Asian country would play an important role in reducing manufacturing costs and improving the company's business structure.

At a conference call on Tuesday, LG said the smartphone plant in Hai Phong would be ready for production in September. "If we begin production in Vietnam in a stable manner from September, it will be possible to cut costs by 50 billion to 100 billion won a year," said Seo Dong-myeong, an executive at LG's mobile communications division.

In the second quarter of this year, LG's net earnings tumbled 67.5 percent on-year to 106 billion won ($89.7 million) mainly due to its sluggish smartphone business. Its operating profit fell 15.4 percent to 652.3 billion won, while sales rose 4.1 percent to 15.6 trillion won.

The mobile division posted a second-quarter operating deficit of 313 billion won, marking the ninth consecutive quarterly loss. LG attributed its poor performance to increased marketing costs for its 5G phone, V50 ThinQ,, and lackluster sales of its flagship phones and low-end devices.

Lim Chang-won cwlim34@ajunews.com

LG Electronics vows to relocate smartphone production line to Vietnam by September

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