Samsung, LG turn India and Vietnam into R&D hubs

Apr 20, 2026, 06:54 pm

Samsung Electronics and LG Electronics are transforming key Global South regions such as India and Vietnam from manufacturing centers into strategic bases for research and development (R&D) and local market expansion.

The Global South — encompassing developing nations across Asia, Latin America, the Middle East, and Africa — has long served as a low-cost production base. However, amid rising geopolitical uncertainties, these regions are increasingly viewed as high-growth markets with strong domestic demand potential.

Both companies are strengthening production capabilities while simultaneously establishing R&D centers to secure technological footholds.

According to Samsung Electronics’ business report released on April 20, the combined revenue of its four major subsidiaries in Vietnam reached 88.32 trillion won last year, up about 8.2% year-on-year.

Vietnam remains a key manufacturing hub for Samsung. The company operates three production subsidiaries in Ho Chi Minh City and Hanoi. TVs and home appliances are produced at the Saigon Hi-Tech Park, while smartphones are manufactured at plants in Bac Ninh and Thai Nguyen provinces. Notably, these facilities produce about half of Samsung’s global smartphone output.

Samsung also plays a significant role in Vietnam’s economy, accounting for around 20% of the country’s total exports and standing as its largest foreign direct investor. In 2022, the company opened a large-scale R&D center in Hanoi — the first comprehensive research facility of its kind established by a global firm in Vietnam — employing around 2,200 researchers focused on smart devices, network technologies, and software.

India, meanwhile, serves as both a manufacturing base and a critical R&D hub for Samsung’s future. The company operates smartphone and home appliance plants in Noida and a home appliance factory in Chennai. Given the logistical challenges of exporting bulky appliances, local production is essential.

Samsung also runs two R&D centers in Bengaluru. One, under Samsung Research, is the company’s largest R&D facility outside Korea, while the other focuses on semiconductor research.

LG Electronics is also accelerating its push in India. Among key Global South countries such as India, Saudi Arabia, and Brazil, India stands out following the company’s local listing, which has strengthened its capital base for further investment in manufacturing and R&D.

LG currently operates plants in Noida and Pune and is building a third facility in Sri City, Andhra Pradesh. Once completed, the plant is expected to produce annually 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million AC compressors.

India is evolving beyond a sales market into a core production base for LG. The company is also focusing on HVAC (heating, ventilation, and air conditioning) and air solution businesses, expanding into localized component production tailored to regional climate conditions to improve profitability.

Vietnam, where LG has operated for over 30 years, remains a major export manufacturing base. Centered around its large-scale Hai Phong campus, the company produces TVs, home appliances, and components. Affiliates such as LG Display and LG Innotek are also located there, creating supply chain synergies.

LG is also expanding its R&D operations in Vietnam. After relocating its existing organization in Hai Phong to Hanoi and converting it into a corporate entity, the company has established an additional branch in Da Nang. It is focusing particularly on developing and verifying software for in-vehicle infotainment systems as part of its growing automotive electronics business.

Meanwhile, key business leaders including Lee Jae-yong, Euisun Chung, and Koo Kwang-mo are set to attend the Korea-India Business Forum being held in India on the same day.

#Samsung Electronics #LG Electronics #India #Vietnam #R&D hub