LG Electronics to exploit the potential of Vietnam for attaining its objectives.
In order to increase its production efficiency, profits, revenue and market share the South Korean television manufacturer LG has decided to shift its television production from Thailand to Vietnam. As according to its Marketing Director stationed in Thailand, Nipon Wong Saengarunsri the South Korean based television manufacturer intends to shift its Television production from Thailand to Vietnam so that it could attain one regional base with Television producing machines comparable with those located in South Korean plants.
According to LG news, the television manufacturer has decided to extend its production to Vietnam as it views the country as a profitable location to carry out production because of the increased transportation cost incurred in Thailand as most of its raw material is bought from China and assembled in Thailand which is quite far away from China. According to LG breaking news transportation cost is not the only reason behind the production shifting decision taken by the largest South Korean television manufacturer as according to latest lg news other reasons such as lower labor costs and business friendly economic conditions prevailing in Vietnam have played a crucial role in making sure that LG electronics shifts its production to Vietnam.
The Business friendly economic conditions that have played their adequate role in attracting the South Korean television manufacturer towards Vietnam encompasses the rising domestic demand that is most likely to add to the revenues and market share of the television manufacturer and good power supply which is essential for manufacturing televisions as power supply is quite essential for operating machinery. The political stability of Vietnam is another factor that plays an important role in making sure that the company moves its production, as recently martial law has been imposed by the Thai army. Apart from political stability and the business friendly conditions prevailing in Vietnam, another factor which makes its a destination for the LG is that it is one of those countries in the region that faces fewer natural disasters.
The move is expected from April to May, and the transfer of the production plant is expected to be easy for the company as it has already got the approval for more than one billion dollar investment from the Vietnamese ministry of investment. Now one should wait and watch to find out the extent to which the South Korean television manufacturer is able to exploit the potential of Vietnam for fulfilling its objectives.