Chairman of the Hai Phong municipal People's Committee Le Van Thanh (right) and Chief Production Officer and Executive Vice President of LG Display Jeong Cheol-Dong (left) are signing a memorandum of understanding on LG's new project in Hai Phong. — Photo baodautu.vn

HA NOI (Biz Hub) — The Republic of Korea's LG Display Co. Ltd will invest US$1.5 billion into its new project at the Trang Due Industrial Zone in the northern city of Hai Phong.

Under the project, LG Display will build a production and outsourcing zone for organic light emitting diode (OLED) display products, covering an area of 40 hectares.

A memorandum of understanding on the project was signed by Chairman of the Hải Phong municipal People's Committee, Le Van Thanh, and Chief Production Officer and Executive Vice President of LG Display, Jeong Cheol-Dong on April 5.

Speaking at the signing ceremony, Thanh said the municipal government would create favourable conditions to allow the project to be implemented as soon as possible. He also asked the investor to ensure payment and to build a housing area for workers.

For his part, Jeong Cheol-Dong said the project is among LG Display's most important tasks and the project was their first OLED display production project situated outside RoK territory.

The project is scheduled to commence in early May and is expected to become operational in mid-2017, providing employment for approximately 6,000 labourers. Most of the OLED display products manufactured will be for the world market, though about 20 per cent of the products were aimed to serve domestic consumption.

Hai Phong is currently attracting over US$10 billion in foreign direct investment. This LG Display's project is one of the two largest investment projects in the city, alongside Japan's US$1.5 billion Bridgestone tyre production project, which is currently in its first phase of operation. — VNS