LG Electronics reportedly wants its smartphone business to Vingroup Co. sold in Vietnam.
Vingroup has reportedly offered the most attractive offering among the companies that covet LG Electronics’ smartphone business.
Vingroup is a large conglomerate in Vietnam with a market capitalization of US $ 16.5 billion by the end of 2020. It accounts for 14 percent of the total market capitalization of Vietnamese listed companies. The company is engaged in diverse business areas, including hotels and tourism, real estate, distribution, construction, automobiles and mobile phones, but the global scene is still small.
Vingroup entered the smartphone industry in 2018. He manufactured smartphones under an original design manufacturing contract (ODM) with LG Electronics. It is currently the third largest producer of smartphones in Vietnam after Samsung Electronics and Oppo.
If it acquires the smartphone business of LG Electronics, it could make a significant leap forward. LG’s reputation, advanced technologies and sales networks can make Vingroup innovative.
Although LG Electronics is reviewing various orders under Koo Kwang-mo’s chairman of LG Group, the company apparently decided to sell out its smartphone business piece by piece as it is practically difficult to sell it.
Vingroup is reportedly interested in taking over LG Electronics’ smartphone business in the United States. The company wants to advance to the US market through the acquisition. LG Electronics’ share of the North American smartphone market was 12.9 percent in 2020.
Meanwhile, LG Electronics President Kwon Bong-seok sent an email to employees on January 20 to reassure them about their job security, but a restructuring of the workforce seems inevitable, regardless of how the MC Business Division is revamped .