LS Electric ramps up Vietnam strategy as ASEAN demand surges
Korea Herald correspondent
HANOI, Vietnam — LS Electric presented its advanced electric solutions for sustainable energy transition at Elecs Vietnam 2025, underscoring the growing importance of the ASEAN region as its second-largest market after North America.
'Southeast Asia stands out as a crucial market for us and continues to grow,' said Kim Jong-woo, chief operating officer of LS Electric, during a media briefing at the company's exhibition booth on Wednesday.
'In Vietnam, where we expanded our production facility three years ago, we are now increasing its manufacturing capacity. Our goal in Southeast Asia is to win more local projects by expanding local production capabilities, like we've done in Vietnam.'
Highlighting 'K-electricity' as a new buzzword following 'K-food' and 'K-culture,' Kim added that LS Electric aims to strengthen its production, engineering and service maintenance capabilities to drive both organic and inorganic growth in the ASEAN market, which also serves as a strategic export hub for North America and the Middle East.
LS Electric was the first among Korean heavy electrical equipment manufacturers to enter Vietnam, making its debut in the 1990s. It has since maintained dominance in the local low-voltage power equipment market, boasting a 45 percent market share as of last year.
Tran Viet Cuong, deputy director of Consrich Vietnam, a power distribution panel manufacturer, said his company has maintained business ties with LS Electric for over 20 years, primarily due to its strong brand recognition.
'Although we've also used products from HD Hyundai Electric, LS Electric's Korean rival, which is more competitively priced, LS still has a stronger presence in Vietnam,' Cuong noted.
'LS Electric also stands out for its delivery speed. Even during the COVID-19 pandemic, while Japan's Mitsubishi faced production delays, LS maintained efficient operations through its local distribution network.'
Building on the trust of its client companies, LS Electric is pioneering the next-generation electric solutions market in Vietnam. This sector is also in line with the Vietnamese government's commitment to expanding power infrastructure as a key driver of economic growth.
Notably, the power equipment supplier focuses on 'energy storage systems,' a crucial component for stabilizing the rising power demand. The ESS largely consists of a battery and power conversion systems.
'While battery manufacturers are venturing into the ESS sector, it has traditionally been the domain of electric companies, which are in charge of the PCS to ensure stable management of the power system,' said an LS Electric official. LS Electric's Bac Ninh facility in Hanoi supplies PCS for Samsung SDI's Samsung Battery Box, a utility-scale ESS that is fully contained within a standardized shipping container.
LS Electric also looks to provide smart factory solutions, already integrated in its Cheongju plant in South Korea, for Vietnamese manufacturing companies, including real estate developers. Last year, the company signed an agreement to build a smart factory for Becamex's industrial complex in Binh Duong.
'We are already targeting smart factory markets in Europe, particularly Germany,' said another LS Electric official.
'Our solutions enable full automation of the equipment, with facility data being uploaded via (Internet of Things) for monitoring within a digital twin. This setup allows for remote quality inspections and operations. It can improve the efficiency of the equipment by accumulating and analyzing collected data.'
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