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South Korean tech giant LG Electronics Inc plans to produce home appliances from its smartphone manufacturing line in northern Vietnam, with the transformation completed within this year while reallocating affected workers.
LG earlier exited from the mobile business.
Jung Hai-jin, president of LG Electronics' Vietnamese arm, noted that the closure of LG's mobile business will not significantly impact its production, business activities, or employees in Haiphong.
LG's Haiphong production line, launched in 2015, has been producing home appliances and in-vehicle infotainment components on top of smartphones.
The Haiphong plant employs over 16,000 workers.
LG's mobile business operating losses reached 5 trillion won last year and have been in the red since the second quarter of 2015.
LG is currently negotiating with a workers' union of its smartphone production line in Brazil.
