LG Electronics yesterday signed a land-lease agreement for the second stage of the firm’s investment expansion in the northern port city of Haiphong following the successful implementation of the first phase.

A signing ceremony for the in-principal agreement in land sub-lease between LG Electronics, Kinh Bac City Development Holding Corporation (KBC) and Saigon- Haiphong Industrial Park Corporation (SHP) took place on December 18. Accordingly, LG Electronics is going to rent additional 40 hectares of land at the Trang Due Industrial Park (IP) for its second stage of expansion plans.

Back in January 2013, LG Electronics made an influencial decision to invest in Haiphong. It chose KBC’s Trang Due IP to build its manufacturing plant to produce electronic components with the total investment capital of $1.5 billion. LG Electronics signed a 40ha-land lease agreement with KBC at that time. LG Electronics was granted an investment certificate by the Haiphong Municipal Economic Zones Management Authority in June 2013.

Since then, LG Electronics has been actively speeded up the construction of plant in the Trang Due IP. The plant has been regarded as one of the fastest-built facilities in Haiphong and it has been put into trial production.

KBC is also inviting LG Electronics’ suppliers to set up shop at the Trang Due IP. To this end, the IP developer has also signed a memorandum of understanding with the Korean Electronics Association and other electronics part manufacturers in Korea.

The Trang Due IP has become an important part of the port city’s Dinh Vu-Cat Hai Economic Zone since 2013. In 2015, KBC hopes to draw in further investment projects from Korea.

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