Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
LS Electric bets big on Vietnamese plant for ASEAN leadership
LS Electric's factory in Bac Ninh, Vietnam / Courtesy of LS Electric
By Lee Min-hyung
Company aims to achieve annual sales of $300 mil. by 2030
BAC NINH, Vietnam — In a small city located some 30 kilometers northeast of Hanoi stands LS Electric’s primary overseas production line used to supply its switchgears and other electric equipment to local and international clients.
The factory’s strategic importance is growing rapidly, as global demand for the firm’s low voltage electric products surges for not just Vietnamese customers, but global firms seeking expansion here.
LS Electric completed construction for the Bac Ninh factory in October 2022 with an area of 30,000 square meters, after relocating its outdated facility in Hanoi.
The decision was necessary to expand its manufacturing capacity in line with soaring demand for its products. Last year, LS Electric Vietnam achieved a landmark sales figure of more than $100 million (140 billion won) for the first time, driven largely by the increased production capacity of the Bac Ninh plant.
LS Electric is betting on the factory's continued expansion, with plans to build another production line on an unused piece of land nearby. The company has set a sales target of $300 million by 2030, expecting its annual sales to continue soaring this year with widening exports to the global market.
Choi Jong-hoon, center, general director and head of LS Electric Vietnam, inspects the firm’s switchgears during an on-site inspection of the Bac Ninh plant in Vietnam, July 15. Courtesy of LS Electric
“LS Electric Vietnam's 2025 sales are forecast to top 200 billion won, which is ten-fold growth from five years earlier,” Choi Jong-hoon, general director and head of LS Electric Vietnam, told reporters during a factory tour on July 15.
“We are pursuing a dual growth strategy not just for Vietnam’s state-level power infrastructure projects, but also for exports to other countries with huge growth potential, such as Saudi Arabia, the United Arab Emirates, Kazakhstan, Brazil and Kenya.”
LS Electric’s top management recently approved a plan to expand the production line at the Bac Ninh factory to fulfill rising demand from private clients such as Samsung, SK, LG and Lotte.
LS Electric Vietnam's switchgears are lined up at its plant in Bac Ninh before being delivered to customers, July 15. Courtesy of LS Electric
“LS Electric Vietnam’s core competitiveness lies in the quality of our products and tech prowess,” Choi said. “We will develop our business model into a value-added package business operator that handles production, sales and even services.”
The Bac Ninh factory’s key production items include medium voltage switchgears, low voltage switchgears and cast resin transformers. They have diverse uses in areas such as state-level plant projects and factories for the aforementioned global IT companies and other manufacturing industry players.
“We will sophisticate our product portfolio and diversify export channels with a focus on key strategic items so the company can level up its presence in Vietnam and other global markets,” he said.
LS Electric Vietnam’s annual production capacity is widely forecast to amount to 55 billion won this year, a figure expected to grow by more than 30 percent after construction for the new production line is completed.
The company plans to strengthen its leadership in Vietnam’s low voltage electric equipment market after expanding its manufacturing capacity. Last year, LS Electric achieved a market share of more than 40 percent.
Choi Jong-hoon, center, general director and head of LS Electric Vietnam, talks with employees at the firm's Bac Ninh plant in Vietnam, July 15. Courtesy of LS Electric
The electric equipment maker built its first local plant in Hanoi in 1997, and has maintained leadership in the market since 2013.
Hundreds of Vietnamese workers were busy assembling parts for switchgears on the second floor of the Bac Ninh factory during a recent factory visit. Switchgears are a type of electrical device used for safe and stable electricity distribution and are crucial in power plants, data centers and large factories.
Completed switchgears and other electrical equipment could be seen lined up on the first floor before delivery to clients.
The chief of the firm’s Vietnam business also reiterated the company's long-term vision to turn the affiliate into a linchpin for its expansion into the Association of Southeast Asian Nations (ASEAN).
“LS Electric Vietnam will continue to tighten its grip on every single process for our business, such as production, research, operation, sales and services, so it can serve as a major hub for our expansion into the ASEAN market,” he said.
An employee at LS Electric Vietnam assembles parts for the firm's switchgears at its plant in Bac Ninh, Vietnam, July 15. Courtesy of LS Electric
The firm’s private sector clients include LG Display Vietnam Haiphong, LG Innotek Vietnam Haiphong, Lotte Center Hanoi and Samsung R&D Center Vietnam.
The company also exports its switchgears to other countries in Asia and Europe. LS Electric is a key partner for SK Nexilis’ factory in Poland.
LS Electric’s Bac Ninh factory is somewhat different from other factories used for the mass production of the same products, as the facility is designed for customized production based on the requests of each client.
As a result, the size of each of the switchgears ready for delivery was different.
Kim Sung-ho, technical director and head of development at LS Electric Vietnam, said the company plans to build an R&D center in Hanoi by the end of 2026 in an effort to elevate its technological competitiveness in line with global standards.
“We plan to train global engineers by selecting a group of experienced employees from our design and tech teams,” he said.