LG Innotek’s V3 Factory in Hai Phong, Vietnam. Image: LG Innotek
On September 21, 2025, LG Innotek officially announced the completion and full operation of its V3 factory in Hai Phong’s manufacturing zone. This marks a significant step toward fulfilling the company’s $1 billion investment commitment in Vietnam by the end of 2025, as announced in July 2023.
Spanning an impressive 150,000 m², the V3 factory doubles LG Innotek’s camera module production capacity in Vietnam. This expansion ensures a stable, high-volume supply for leading global smartphone manufacturers, with Apple as the primary customer.
Robots inside LG Innotek’s “Dream Factory” in Gumi, North Gyeongsang Province, South Korea
This expansion is a core component of LG Innotek’s “Mother Factory” strategy. Under this plan, South Korean facilities (Gumi, Paju) will shift focus from mass production to R&D, producing high-value camera modules and advanced optical components for autonomous vehicles and AR/VR devices.
Meanwhile, Vietnam’s manufacturing hub will serve as the primary production base, concentrating on cost-optimized, mainstream camera modules. This strategy aims to strengthen LG Innotek’s competitive edge against Chinese rivals like Sunny Optical and O-Film.
“With the completion of the V3 factory expansion in Vietnam, profitability in the camera module sector is expected to gradually improve,” stated Moon Hyuk-soo, CEO of LG Innotek. “We will continue to solidify our market leadership.”
Located in Trang Due Industrial Park, An Duong District (Hai Phong), LG Innotek is one of LG Group’s three factories in Vietnam.
Established in 2013, LG Innotek Vietnam Hai Phong has a total registered capital of approximately $2 billion. By the end of 2024, realized investment reached $932 million, employing 5,305 workers. In 2024, the company reported robust performance with revenue of 5.4195 trillion won (approx. $4.6 billion) and a profit of 187.97 billion won (approx. $160 million).
However, the first half of 2025 presented financial challenges. According to LG Group’s consolidated report, LG Innotek Hai Phong’s revenue for the period was 1.9557 trillion won (approx. $1.67 billion), a 37% year-on-year decline. Net profit also dropped by 50.8% to 76.5 billion won (approx. $65 million).
LG Innotek is a global leader in smartphone camera module production. (Image: LG Innotek)
Analysts in South Korea attribute this decline to the global smartphone market slowdown and temporary dips in iPhone demand. Nonetheless, LG Innotek’s continued expansion in Vietnam underscores its long-term vision and confidence in the country’s role within its global supply chain. This move is seen as preparation for the next growth cycle and a reinforcement of its strategic partnership with Apple.
To support its long-term strategy, LG Innotek Vietnam Hai Phong recently sought a $20 million subsidy from Vietnam’s Investment Support Fund, under Decree 182/2024/NĐ-CP, for workforce training, R&D, and high-tech manufacturing initiatives.
In summary, LG Innotek’s large-scale production expansion, despite short-term financial hurdles, is a strong affirmation of Vietnam’s strategic importance in its global supply chain. This long-term bet on market recovery and the Hai Phong facility’s indispensable role signals a bold commitment to future growth.
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