The International Finance Corporation (IFC) on September 24 announced a $200 million investment in LG Innotek Vietnam Hai Phong Co. Ltd. (LGITVH).

With the investment from the IFC, LGITVH plans to construct a third factory to expand its production capacity for smartphone camera modules. This project will transform LGITVH's operations into a comprehensive manufacturing industrial complex, strengthening cooperation with domestic suppliers to meet global standards, while promoting increased local value addition and the development of a skilled workforce.

The loan from the IFC will significantly enhance LG Innotek's global competitiveness and strengthen LGITVH's production capacity and product quality, said Mr. Ji-hwan Park, CFO and Senior Vice President of LG Innotek.

This loan is structured as a sustainability-linked loan to encourage LG Innotek to reduce greenhouse gas emissions in line with the company's sustainable development roadmap. LG Innotek aims for all its factories to use 100% renewable electricity by 2030 and achieve carbon neutrality by 2040.

With support from the IFC, the production expansion of one of South Korea's leading high-tech electronics manufacturers is expected to create a significant shift for Vietnam's manufacturing industry, said Mr. Carsten Mueller, the IFC's Industry, Agribusiness and Services Director for Asia and the Pacific.