LG Electronics' senior officials and Korean Ambassador to Vietnam Oh Young-joo (third from left) attend the opening ceremony of LG Electronics Development Vietnam, the tech giant's new automotive R&D unit, in Hanoi, Vietnam on Wednesday. (LG Electronics)
LG Electronics said Thursday it has elevated its research and development center in Vietnam into a corporate entity as the tech giant seeks to further bolster its fast-growing automotive solutions business.
The new unit, called LG Electronics Development Vietnam, will be in charge of developing and testing software for in-vehicle infotainment systems, one of the key products of LG’s vehicle solutions division.
The IVI systems encompass telematics, audio, video and navigation solutions providing drivers and passengers a variety of driving-related information and entertainment functions.
LG held a ceremony to celebrate the new unit launch in Hanoi on Wednesday, with senior company and government officials of both countries in attendance. Key guests included Nguyen Le Hung, deputy director of the high technology department of the Ministry of Science and Technology in Vietnam, South Korean Ambassador to Vietnam Oh Young-ju, and Lee Sang-yong, LG’s research chief of vehicle solutions.
“We will continue to provide automotive solutions that deliver differentiated value to our clients in the global automotive sector,” Lee said.
“By boosting our infrastructure to the next level, LG will further enhance our capabilities and develop next-generation, innovative automotive solutions.”
In the third quarter of 2022, LG topped the global IVI systems market to secure a 23 percent share, according to market tracker Strategic Analytics.
According to LG, the new R&D subsidiary is part of LG’s strategy to solidify its position in the global auto parts market.
"Based on balanced growth of its three core businesses -- IVI systems, lighting and headlight systems via ZKW Group and e-powertrains developed through a joint venture between LG and Magna -- the company seeks to accelerate its business for next-generation automotive solutions," LG added.
For the new subsidiary, LG said it aims to hire employees, to increase the number of skilled professionals from the current 750 to 1,000 by 2024.
LG established its first R&D Center in Hanoi under its Vietnam Production Corporation, in 2016. The company launched its second R&D branch in Da Nang in 2020.
In collaboration with Vietnamese universities, LG has been running programs to train young locals seeking careers in software development in Da Nang and neighboring cities since 2021. The company said it will expand the academic collaboration to run programs for students in Hanoi this year.
Since 2021, LG has been operating programs in collaboration with Vietnamese universities to help foster talented, young locals seeking careers in software development, the company said.
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