LG Electronics’ Impressive Global Performance in Q1 2025
LG Electronics’ Global Presence
LG Electronics has announced its impressive global financial results for the first quarter of 2025, with record-breaking consolidated revenue of 22.74 trillion won, the highest in the company’s history. Operating profit reached 1.26 trillion won, surpassing the 1-trillion-won mark for six consecutive years.
However, LG’s performance in Vietnam did not mirror this global success. The company’s two factories in Hai Phong, LG Electronics Vietnam (LGEVH) and LG Innotek Vietnam (LGITVH), fell short of achieving similar growth rates.
Performance Comparison of LG’s Vietnamese Factories
LGEVH, which manufactures electronic and home appliances, reported revenue of 1,688 billion won (approximately 27.3 trillion VND), a 16.7% increase year-over-year. However, its profit declined by 7.1% to 66.4 billion won.
On the other hand, LGITVH, which primarily produces camera modules, experienced a decrease in revenue by 35.6% to 1,156 billion won (18.7 trillion VND). Its profit also took a hit, falling by 30.8% to 66.9 billion won.
When considering the combined performance of the two factories, revenue declined by 12.3% to 2.844 trillion won, and profit decreased by 20.7% to 133.3 billion won.
Despite the overall decline in revenue and profit for the Vietnamese factories, LGEVH’s performance propelled it to the third-largest position globally, just behind LG Innotek in South Korea and LG Electronics USA. However, LGITVH dropped from the third position in Q1 2024 to sixth place in Q1 2025.
In terms of profit, LGITVH and LGEVH held the third and fourth positions, respectively, in Q1 2024, after LG Electronics USA and LG Electronics India. However, in Q1 2025, the two Vietnamese factories slipped to the fifth and sixth positions.
LG is one of the largest foreign investors in Vietnam, with investments totaling 8.24 billion USD in Hai Phong as of April 2024. This includes 7 projects with a total investment of 7.24 billion USD and 50 satellite companies with a combined investment of nearly 1 billion USD.
The Biggest Multi-Level Marketing Company in Vietnam: Revenue of nearly $85 million, surpassing the Chinese market in Q1 2025.
As of now, there are only 16 enterprises in Vietnam that hold a valid license for multi-level marketing operations, a decrease of 4 businesses compared to the beginning of 2024. This shift underscores the evolving landscape of direct selling in the country and highlights the need for companies to adapt and innovate to thrive in a dynamic market environment.
The Pain of Q1: Oil & Gas Sector’s Struggles
The sharp decline in global oil prices in Q1 has taken a toll on businesses in the petroleum sector, with most companies experiencing a significant downturn compared to the previous year. This development aligns with the predictions made by several securities firms.
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“Vietbank’s Q1 2025 Profit Soars: A Triple-Digit Surge in Core Income”
The consolidated financial statements for Q1 2025 reveal that Vietbank (VBB on UPCoM) recorded a remarkable performance with a pre-tax profit of over VND 248 billion, tripling its earnings from the previous year’s first quarter. This impressive growth is primarily attributed to the bank’s core income streams.
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Despite a reinstatement of nearly VND 40 billion in management expenses, the Q1 2025 net profit of Hoa Binh Construction Group Joint Stock Company (UPCoM: HBC) witnessed a staggering 91% decline year-over-year.
