‘Samsung of Vietnam’ Vingroup enters the North American market through LG
Bean Smart, launched in 2018 and rapidly grew to the 3rd place in Vietnam
LG Electronics’ technology, sales network, and factories in Latin America, etc.
[서울=뉴스핌] Reporter Kim Seon-yeop = It was confirmed that LG Electronics is considering a plan to split and sell the MC business unit while LG Electronics is in the process of arranging the smartphone business.
Among them, the highest ransom is LG Electronics’ U.S. smartphone business, and it is known that Vietnam Bin Group wants to take over.
It is said that the Bean Group, called’Samsung of Vietnam’, is trying to enter the US market by inheriting LG Electronics’ North American smartphone business.
|A ceremony to commemorate the launch of Bean Smart Smartphone in Ho Chi Minh, Vietnam This photo has nothing to do with the content of the article. [사진=로이터 뉴스핌]|
On the 20th, an IB industry official familiar with LG Electronics said, “It is difficult for LG Electronics to sell the entire MC division, so we are considering a split sale,” and said, “We are negotiating the sale of the Vietnamese business in Vietnam with the US business.”
As of the end of last year, the market capitalization of Vingroup was $16.5 billion (about 19 trillion won), accounting for 14% of the total market capitalization of listed companies in Vietnam.
Started as a Ukrainian ramen company in 1993, Vingroup built a resort in’Nha Trang’, a resort in southern Vietnam, in 2001, and started the real estate development business in earnest.
In 2012, the hotel tourism division and the real estate development division merged to become the Bean Group. Currently, it is diversifying its business from distribution, construction, automobiles and mobile phones, and is a national representative company that is at the forefront of the Vietnam government’s goal of becoming a high-tech manufacturing powerhouse.
In 2017, it established the automobile manufacturer’Vinfast’, and in 2018, it established Vinsmart, which is in charge of smartphones, and launched the first smartphone at the end of that year.
It has not yet had a strong presence in the global smartphone market, but in the Vietnamese market, it has surpassed the Apple iPhone to reach the third place in market share. First place is Samsung Electronics, and second place is Oppo in China.
It can be interpreted that the Bean Group has determined that it is possible to target the US market if it possesses LG Electronics’ advanced technology, manufacturing know-how, sales network, and brand value.
Although LG Electronics does not perform as well in Korea or Europe, it has consistently been chosen by consumers in the North American market.
According to market research firm Strategy Analytics (SA), LG Electronics’ North American smartphone market share last year was 12.9%.
If a deal with Vingroup is successful, the smartphone sales network, after-sales service center, R&D center manpower, and production plants in Latin America are expected to become the main targets for transactions.
However, it is reported that LG Electronics’ smartphone factory located in Vietnam was not included in the acquisition target.
LG Electronics’ smartphone business has been regarded as a sore finger for LG Electronics because it recorded a loss for 22 consecutive quarters from the second quarter of 2015 to the third quarter of last year.
Accordingly, the industry prevailed that it was inevitable to reduce or sell the business. LG Electronics also reviewed various plans under the direction of Chairman Gwang-mo Koo, but it is known that it decided to sell in installments, as it was not easy to sell the whole.
Meanwhile, Kwon Bong-seok, president of LG Electronics, made an e-mail to employees on the same day and made an announcement regarding the recent sale.
President Kwon said, “LG Electronics has come to the point where it is time to make the best choice by calmly judging its current and future competitiveness in the mobile business. Currently, all possibilities are open and the direction of business operation is carefully reviewed.” said.
President Kwon also stressed, “No matter how the MC division’s business operation direction is determined, in principle, the employment of members will be maintained, so there is no need to be anxious.”
A previous official said, “It is expected that human resources not included in the sale will be converted to other business units or affiliates.”