LG Electronics begins building R&D centre in Da Nang

Saturday, Oct 31, 2020 07:34

Representatives of LG Electronics and Trung Nam Land JSC have agreed to develop Da Nang into one of the biggest R&D centres in Viet Nam. — VNS Photo Tuan Tu

Korea’s LG Electronics and Trung Nam Land JSC inked an agreement on Friday with a vision to transform Da Nang into the centre of technology and R&D in Viet Nam, creating a mini 'Silicon Valley'.

The agreement marks LG Electronics' commitment to building its second R&D centre in Viet Nam after just one month of preparation.

The Korean giant previously signed a Memorandum of Understanding for the first R&D centre in the city with Da Nang’s Investment Promotion Agency on October 6.

Following the agreement, LG Electronics will set up the centre at the Da Nang Information Technology Park Tower in Lien Chieu District, creating a space for software research and production to serve electronics manufacturing in Viet Nam as well as attracting more subsidiaries of LG from Korea to Da Nang and Viet Nam.

LG Electronics said it would boost co-operation with universities and vocational colleges in Da Nang to train human resources and high-quality manpower for the centre.

Director of LG Vehicle Component Solution Development centre Jung Seung Min said the agreement was the first step in turning Da Nang into a strategic location for LG Electronics and boosting R&D after two decades of investment in Viet Nam.

“I am so impressed with the development of Da Nang's leadership vision. It’s the reason we decided to build our second R&D centre in Da Nang after the one we opened in Ha Noi four years ago,” Jung Seung Min said.

“We hope to build Da Nang into the biggest R&D centre for LG Electronics in Viet Nam, and a centre of advanced technology,” he said.

LG Electronics will base its R&D centre at the Da Nang Information Technology Park Tower in Lien Chieu District. LG plans to make the centre the biggest in Viet Nam and a key source for electronics manufacturing. VNS Photo Cong Thanh

Nguyen Anh Huy from Trung Nam said the agreement marked the significant co-operation between a local business and Korean partner in turning Da Nang into an attractive destination for global high-tech industries.

He said Trung Nam and LG Electronics would join hands to realise the ‘dream’ of a ‘Silicon Valley’ in central Viet Nam.

Last week, Trung Nam began construction of its first surface-mount technology (SMT) factory with a capacity of 6.2 million electronic products per year at the Da Nang Hi-tech Park.

Da Nang has been building the 341ha Da Nang IT Park and calling for businesses from Silicon Valley and the US to invest in healthcare, high-tech industries, Artificial Intelligence, education, real estate and automation.

Two Silicon Valley-based businesses – Meritronics AMT Inc and Ai20X Silicon Valley –have already agreed to develop the park.

According to the latest report from the city, Da Nang had drawn 868 foreign direct investment (FDI) projects with total registered capital of US$3.5 billion.

Korea is one of the top five foreign investors in Da Nang with 232 projects worth $390 million.

The South Korea Trade and Investment Agency (KOTRA) also opened a representative office in Da Nang to promote investment and connections with Korean investors in 2018.

The Consulate General of the Republic of Korea will inaugurate an office in Da Nang on November 6. — VNS

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