LG Display Group, the screen-making subsidiary of South Korea's LG Electronics, on Friday started work on a US$1.5 billion factory in Hai Phong City.
The facility, covering more than 40 hectares in Trang Due industrial park, is slated to go into operation next year.
It will produce digital displays using LG's latest technology organic light-emitting diode, or OLED, according to a memorandum of understanding the group signed with the People's Committee of Hai Phong last month
Speaking at the ground-breaking ceremony, Prime Minister Nguyen Xuan Phuc said LG Display Group's project along with others will create a major electronics and information technology complex in Vietnam.
The government will do its best to support investors in the country, he promised.
In March last year LG Electronics opened a $1.5 billion factory to produce digital devices and electronics such as TVs, cell phones and washing machines in Hai Phong.
South Korea is currently the third largest trade partner of Vietnam. Two-way trade has surged 75-fold from 1992 to nearly $38 billion.
South Korea is also the biggest investor in Vietnam with nearly 4,800 projects worth around $45 billion.