LG's phone business has been making losses for some time now and company has announced plans to restructure its operations. If the proposed deal happens, LG would retain its phone R&D and outsource the actual manufacturing to Vingroup's facilities. LG currently has phone manufacturing facilities in Vietnam, China and Brazil.
The outsourced model for phone manufacturing wouldn't be a very big shock to anyone - after all, companies like Apple have oputsourced their phone manufacturing to third party operators years ago.
Vietnamese government is supporting the deal, hoping it would expand country's high-tech sector significantly. The deal hasn't been approved yet, but according to Korean sources, it seems likely to happen.
Written by: Petteri Pyyny @ 21 Jan 2021 10:07
