LG Electronics opens R&D corporation in Hanoi, Vietnam

LG Electronics Inc. will upgrade its research and development (R&D) center in Vietnam to an official corporation and boost its electric vehicle (EV) unit, a key sector for future growth. 

The company on Thursday said it held an opening ceremony on the day before for the corporation in Hanoi.

The entity will develop and verify software for vehicle infotainment systems. Infotainment, a key area for LG Electronics' vehicle component solutions (VS) division, simultaneously provides driving-related data and entertainment functions, with telematics and audio, video and navigation (AVN) being the main products.

Data from the market research firm Strategic Analytics on LG Electronics' global market share found that the company ranked first in telematics with 23% in the third quarter last year. Its share on the AVN market since 2021 has also steadily remained in double digits.

LG Electronics will raise the number of developers of electronic car components in the Hanoi corporation over 30% from about 750 to 1,000 by next year.

The company has raised its R&D activity in EV components in Vietnam, a country considered to have many highly skilled software experts, by opening an R&D center under its production company in Hanoi in 2016 and adding a center branch in Danang in 2020.

To develop and secure human resources, LG Electronics since 2021 has run an industry-university program that offers scholarships and guaranteed jobs to universities and outstanding candidates in Danang and vicinity. The program will be expanded to universities in Hanoi this year.

In addition to streamlining its vehicle infotainment systems, LG Electronics will solidify its position on the global market for automotive components based on the even growth of its three core businesses like vehicle lighting systems of its subsidiary ZKW Group and EV powertrains of its joint venture LG Magna ePowertrain.

"We will introduce electronic solutions that provide differentiated value to global finished vehicle clients by further enhancing our R&D infrastructure and capacity to develop and verify next-generation electronic components," said Lee Sang-yong, LG Electronics executive director and head of the company's VS think tank.

Write to Ji-Eun Jeong at jeong@hankyung.com