LS Electric is set to expand its footprint in Vietnam’s smart factory market through a strategic partnership with Becamex, the country’s largest state-run company. The South Korean firm announced on October 15 that it had signed a memorandum of understanding (MOU) with Becamex to promote its smart factory solutions to local businesses.
Under the agreement, Becamex will coordinate marketing efforts and customer acquisition in industrial parks, while LS Electric will handle solution contracts, implementation, and operations. The partnership aims to capitalize on Vietnam’s booming manufacturing sector, with the automation market expected to grow from 3.7092 trillion won ($2.8 billion) in 2023 to 6.138 trillion won ($4.6 billion) by 2028.
LS Electric brings significant expertise to the table, having developed various smart factory solutions and earned recognition from the World Economic Forum for its Cheongju plant in Korea. The company plans to extend its offerings to include renewable energy solutions, such as energy storage systems.
While LS Electric has maintained a strong presence in Vietnam’s power equipment market since the mid-1990s, this move signals a more aggressive push into the country’s digital transformation efforts. However, the success of this venture will depend on the pace of Vietnam’s industrial modernization and the adoption rate of smart factory technologies among local manufacturers.
