We have a feeling the mobile industry will be talking about LG’s fate more frequently now. Just last week, we said with confidence LG isn’t shutting down the phone business yet. But then yesterday, we learned the other South Korean tech giant may soon quit the smartphone business. The latest rumor is related as LG is said to be in talks with another company to sell off the phone business. LG is believed to be discussing with Vingroup of Vietnam.
We’re taking things with a pinch of salt here but the company is reportedly selling the smartphone business. It may be final soon as Vingroup’s offer was the best among the offers. The company is big in Vietnam so it can pay for LG’s mobile unit. With a capitalization market of $16.5 billion (USD) in 2020, Vingroup can pay.
At the moment, Vingroup captures 14 percent of the market capitalization of Vietnamese companies. It has different ventures from mobile phones to automobiles, distribution, construction, real estate, tourism, and hotels. It is mainly known in Vietnam. It doesn’t have a huge presence on the global market. Hopefully, LG will help.
In particular, Vingroup wants to take over the smartphone business of LG Electronics in the US. This way, it can enter the American market even if LG’s reach is not that big. Last year, it has captured 12.9 percent of the market in the country.
LG and Vingroup have been working together since 2018. The latter manufactures phones as an ODM for LG Electronics. The company is the third in the country after Samsung and OPPO. LG may probably help advance Vingroup’s standing in the market. In return, LG’s name will remain in the mobile market.
This is a developing story. We will update you from time to time.