Vingroup’s interest in tangible and intangible assets in the North American market rather than a factory in Vietnam
LG Haiphong plant seems to have to find a separate acquirer… “If it fails, it may be liquidated”
Industry “May show interest in Chinese companies starting a new smartphone”
LG Electronics official “Nothing has been decided on the sale of the business”
[서울=뉴스핌] Reporter Kim Sun-yeop = While LG Electronics is considering the sale of its MC division, interest is also focused on the sale of the LG smartphone factory located in Hai Phong, Vietnam.
Some say that Vietnam’s Vingroup will purchase LG Electronics’ smartphone production line, but the factory itself is said to have failed to reach the negotiating table. The Bean Group is very interested in real assets such as LG’s patents, research manpower, and sales network.
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| [서울=뉴스핌] Reporter Kim Sun-yeop = View of LG Electronics’ Haiphong campus in Vietnam [사진=LG전자] 2021.01.22 [email protected] |
On the 22nd, an official from the IB industry said, “Because Bean Group already owns its own smartphone production facility, it is not interested in LG smartphone factory. What is the interest of Bean Group is the smartphone operating system and infrastructure of LG Electronics’ US subsidiary. “He said.
Since LG Electronics announced the possibility of selling its business on the 20th, various opinions have been flowing in the industry over the subject of the acquisition. As it is difficult to’sell through’ due to chronic deficits in the smartphone business, etc.,’split sale’ is being considered, but Google or Bean Group are mentioned as the leading candidates.
In particular, it is known that the Bean Group, called the’Samsung of Vietnam’, is trying to enter the US market by inheriting LG Electronics’ North American smartphone business. LG Electronics ranks third in smartphone market share in the US market.
Vingroup is expected to jump into the North American market by taking over LG Electronics’ tangible and intangible assets related to the North American market, and through a gap in which Chinese brands are unable to gain foot in the US-China trade dispute.
An industry insider said, “LG’s patents, smartphone design and production capabilities, QA and sales management capabilities, business relationships with distributors such as Best Buy, and strong partnerships with Verizon, the largest telecommunications company in the United States since feature phones, etc. It would be attractive to this buyer.”
Therefore, if Vingroup buys the MC division, the Vietnamese factory must find a separate owner, but the LG Vietnam factory located in Hai Phong is located in the same cluster as the LG home appliance factory, so it may not be easy to find the buyer.
The annual output of the Haiphong smartphone factory is about 10 million units, accounting for about 40% of LG smartphone production. In 2019, LG Electronics stopped operating its smartphone production plant in Pyeongtaek, Gyeonggi-do, and moved related facilities to Haiphong.
An industry official said, “If no buyer is found, it is possible to go through the liquidation procedure of the production subsidiary.” said.
Another industry insider predicted, “In China, there are still many new places to enter the smart phone business, so there may be places where you want to start the smart phone business at a higher stage by taking over the production line of LG Electronics.”
An official from LG Electronics said, “Nothing has been decided on the sale of the business,” he said.