LG Electronics intends to sell off smartphone business to Vietnam's Vingroup

Phi Nhat

Jan 21, 2021 / 05:09 PM

Vingroup is one of the most potential buyers for LG Electronics' smartphone business.

South Korea’s LG Electronics reportedly intends to sell off its smartphone business to Vietnam’s conglomerate Vingroup, according to South Korea’s media.

LG Electronics intends to sell off smartphone business to Vingroup. Photo: Vingroup

The South Korean brand is considering all options for its loss-making mobile division that could include closing or selling off its business, according to Reuters in Seoul. The brand would be focusing resources on premium home appliance and automotive electronics.

Possible buyers are Vietnamese conglomerate Vingroup, Facebook, Volkswagen and Google, and Vingroup is one of the strong acquisition candidates, according to NewDaily.

Vingroup, with a market capitalization of US$16.5 billion as of the end of 2020, accounts for 14% of the total market capitalization of Vietnamese listed companies. The group is operating in diverse business areas, including hotels and tourism, real estate, distribution, construction, automobiles, and mobile phones.

VinSmart, Vingroup’s subsidiary, entered Vietnam’s smartphone market in 2018. It has been producing smartphones under an original design manufacturing (ODM) contract with LG Electronics. Although it hasn’t yet had a strong presence in the global smartphone market, in Vietnam, VinSmart's smartphone outstripped Apple’s iPhone to reach the third place in terms of market share after Samsung and Oppo.

Newspim reported that LG Electronics’ sales network, research & development center, Brazil-based production plant attract VinSmart for its expansion. LG Electronics' share in the North American smartphone market was 12.9% in 2020, according to Strategy Analytics.

Until now, Vingroup has no comment on this. However, the group also revealed it will export 5G-enabled smartphones to the US this year. Last September, its subsidiary VinSmart exported the first batch of smartphones to this market and planned to assemble nearly two million units for its partner in 2021.

Vsmart kicks Xiaomi out of top 5 smartphone brands in Q2

14 Aug, 15:14

The Vietnamese brand ranked fourth in terms of smartphone sales in the second quarter of 2020.

Vingroup to expand its business to US this year: CNN

19 Jul, 11:29

Vingroup plans to sell Vsmart smartphones in 2020 and VinFast cars in 2021 into the US market, Vice Chairwoman of Vingroup Le Thi Thu Thuy told an interview on CNN.

VinSmart cellphones to have plenty of features at low price-point: Fitch Solutions

10 Dec, 18:17

The key to this strategy is an upcoming manufacturing plant costing VND1.5 trillion (US$64.6 million), which will reportedly have the scale to produce 300,000 smartphones annually.

Vietnam honors 50 transparent listed companies as stock market reaches new milestones

Vietnam honored 50 listed companies for excellence in transparency at the 2025 Vietnam Listed Company Awards, which spotlighted standout annual reports, corporate governance and sustainability disclosures amid rising foreign investor interest and growing alignment with international reporting standards.

05 Dec, 06:51 PM

Vietnam to tighten biometric authentication for new bank cards next year

Bank card issuers must conduct a face-to-face meeting and match the biometric data of individual customers or the legal representative of organizational customers with their identity documents.

05 Dec, 10:37 AM

Make in Vietnam forum spotlights breakthroughs shaping digital future in the country

Vietnam will host the seventh National Forum on Vietnamese Digital Technology Enterprises on December 25 in Hanoi, highlighting policy directions, strategic technologies and progress under the “Make in Vietnam” initiative as the country pushes toward a stronger digital economy.

02 Dec, 03:33 PM

Hanoi and Moscow seek new economic momentum as partnership marks 75 years

At the Moscow–Hanoi Business Forum, leaders from both capitals said 75 years of Vietnam–Russia ties provide a strong foundation to deepen economic and investment cooperation, especially in technology, trade and urban development.

02 Dec, 02:17 PM

Vietnam manufacturing maintains strong momentum despite storms disrupting supply chains

Vietnam’s manufacturing sector continued to expand in November, marking the fifth straight month of improvement, even as severe storms caused supply-chain delays and slowed production, according to S&P Global.

01 Dec, 09:13 PM

Techfest 2025 returns to Hanoi, spotlighting Vietnam’s vibrant startup community

Hanoi’s Hoan Kiem pedestrian street will host Techfest Vietnam 2025 from December 12 to December 14, welcoming entrepreneurs, investors and the public to explore emerging technologies and celebrate the country’s growing culture of innovation.

01 Dec, 09:07 PM

Vietnam expands major entrepreneurship program to unlock opportunities for women nationwide

The Vietnam Women’s Entrepreneurship Support Program has surpassed nearly every target set for 2017–2025, empowering more than 118,000 women to launch new ventures and laying the groundwork for a stronger, more inclusive entrepreneurial ecosystem in the next decade.

01 Dec, 07:11 PM

HHTIP accompanies businesses in efficient energy use for sustainability

As green transition becomes a decisive factor shaping future growth, Hanoi is intensifying efforts to push energy efficiency across its industrial zones. The city’s management board is building a development model centered on clean energy, responsible production and sustainable operations.

30 Nov, 02:00 PM