At a conference on July 30 announcing the Prime Minister’s decisions on economic zone development and launching the Haiphong Free Trade Zone (FTZ), Haiphong authorities awarded the Investment Registration Certificate for the $1 billion mega-project of LG Innotek Vietnam Haiphong Co., Ltd.

Covering approximately 32 hectares within the Dinh Vu-Cat Hai Economic Zone (EZ) and forming part of the Haiphong FTZ under development, the new facility is expected to become one of LG Innotek’s key global manufacturing hubs, specialising in advanced semiconaductor solutions.

The new project at DEEP C Haiphong 2 is entirely separate from LG Innotek Vietnam Haiphong’s existing camera module manufacturing complex of three factories, which has attracted more than $2 billion in investment.

Haiphong authorities awarded the Investment Registration Certificate for the $1 billion mega-project of LG Innotek Vietnam Haiphong Co., Ltd. Photo: Thanh Son

This move marks the company’s expansion from camera module assembly into the production of semiconductor components and packaging materials, a critical segment of the semiconductor value chain.

The facility will focus on three core product lines designed to support the telecommunications and AI era.

The first product line consists of semiconductor substrates for radio-frequency modules used in mobile and wearable devices. The second line includes substrates connecting memory chips and processors in mobile devices. The third product line comprises high-value semiconductor substrates designed for CPUs, GPUs and server systems.

Under the latest schedule, construction will commence in the third quarter (Q3) of 2026, trial operations will begin in Q3 of 2027, and mass production is expected to start in Q3 of 2028.

In addition to its core manufacturing activities, the project will also include factory, office and warehouse leasing services to support the broader business ecosystem.

Beyond its scale, the project’s standout feature lies in its core product portfolio of advanced semiconductor substrates.

These products are widely regarded as the hidden backbone of AI servers, data centres, smartphones, autonomous vehicles and other next-generation technologies that are driving industrial transformation worldwide.

The selection of Haiphong for LG Innotek’s $1 billion semiconductor project is expected to significantly expand LG’s high-tech manufacturing ecosystem and provide a solid foundation for the port city to integrate more deeply into the global semiconductor value chain.

Bruno Jaspaert, CEO of DEEP C Industrial Zones, said, “This is a very positive signal. The fact that a corporation such as LG continues to choose Haiphong for new investment projects demonstrates its strong confidence in the city’s development potential. For DEEP C, we are also very proud to have been selected by LG as the location for this project.”

What matters most is not merely the scale of the investment, but LG’s decision to continue investing in Haiphong.

This represents the clearest evidence of investor confidence. No company expands its investment unless it believes in the long-term development prospects of the locality.

Park Hong Keun, general director of LG Innotek Vietnam Haiphong Co., Ltd., stated that Haiphong was one of the most competitive investment destinations in Vietnam and offered exceptional opportunities for breakthrough growth.

“Highly skilled workforce, open investment environment, and strong cooperation among government authorities, agencies and businesses serve as powerful drivers of sustainable development for Haiphong. As a trusted long-term partner of Haiphong, LG Innotek will continue expanding its investments, creating high-quality employment opportunities and attracting talented professionals to contribute to the city’s sustainable development,” he said.

For DEEP C, accompanying the development journey of both LG and Haiphong is highly meaningful. Jaspaert expressed confidence that the value proposition offered by DEEP C was one of the factors encouraging LG to continue choosing Haiphong for future projects.

To date, Vietnam has not yet had a fully-fledged Free Trade Zone. Haiphong’s pioneering implementation of this model therefore represents a highly promising milestone.

LG Innotek selects DEEP C Haiphong 2 as the location for USD 1 billion semiconductor project

A FTZ is an important competitive advantage in attracting international investment. When businesses are provided with more favourable conditions for investment and operations, they gain stronger incentives to choose that location.

“In my view, the benefits of a Free Trade Zone extend beyond investors to the workforce employed there. A sufficiently attractive mechanism capable of drawing experts, highly skilled workers and quality talent will help Haiphong strengthen its competitiveness relative to many other localities in the region," Jaspaert said.

“At a time when competition for talent is becoming increasingly intense, creating favourable conditions for talented people to choose Haiphong as a place to live, work and build a long-term future is extremely important. That is also what I value most about the FTZ model. It not only supports investors but also seeks to provide a better living and working environment for the people employed by those businesses,”

Haiphong Free Trade Zone (Subzones 2 and 3), comprising the Lach Huyen Port area, DEEP C Haiphong 2 Industrial Park and DEEP C Haiphong 3 Industrial Park, covers approximately 3,369 hectares.

It was established by Haiphong People's Committee under Decision No.4068/QD-UBND dated October 13, 2025, based on the special mechanisms and policies authorised by the National Assembly for pilot implementation under Resolution No.226/2025/QH15.

“If Haiphong successfully implements this model, I believe the city will enter a period of breakthrough growth. It will help many companies considering investment in Vietnam make decisions more quickly. When investors look for a Free Trade Zone in Vietnam, Haiphong will be the first destination that comes to mind. If implemented properly, the Free Trade Zone will open a very bright future for Haiphong,” said Jaspaert.