Vietnam News Agency reports Japanese, American, and Taiwanese companies are investing large sums of money into Vietnam’s high-tech industry, in light of the country’s recent membership to the World Trade Organization, according to the Ministry of Planning and Investment.
Many Japanese corporations including Sanyo, Matsushita, Sony as well as Fujitsu, Toshiba, Matsushita and Nidec, are increasing investments in Vietnam.
Japan’s Canon company, after investing $100 million in a laser printer factory in Thang Long Industrial Park in Ha Noi, will invest $100 million in a new factory in Bac Ninh Province. The additional investment will make Vietnam Canon’s largest laser printer units, with a manfacturing production capacity of 700,000 products per month or, 80% of the company’s annual output.
Canon hopes to earn $1 billion in turnover for 2007. Canon has invested nearly $300 million in Vietnam, company officials said.
Japan’s Nidec Corporation President Shigenobu Nagamori said two plants making electronic equipment are now in operation, with a total investment of $50 million. Over the last decade, Nidec Group invested nearly $100 million in factories in the Tan Thuan Export Processing Zone.
By 2010, Nidec Group plans to invest $1 billion in ten high technology plants in the Saigon High Tech Park (SHTP) located in Ho Chi Minh City (HCM). Intel has begun construction of a computer chip assembly plant worth $1 billion in SHTP.
Meanwhile, contract electronics manufacturer Jabil will invest up to $100 million in projects at SHTP.
Taiwanese investors are also planning to inject several billions of US dollars in producing high-end electronic equipment.
Foxconn plans to invest $5 billion in a plant located in the northern provinces of Bac Ninh and Bac Giang designed to make electronic equipment. The project is expected to earn export revenue of $3.5 billion a year and provide jobs for 50,000 people.
One other investor, TECO Group, is entering into a joint venture with SaigonTel to invest $1 billion in building a software center in the new Thu Thiem urban area in HCM City. The center is expected to house 100 IT companies from Taipei.
Some investment officials attribute growing interest in Vietnam to the government’s more open policy in recent years in attracting foreign direct investment (FDI), the country’s low labor costs compared to other manufacturing geographies, and a relatively low finished product cost.
Vietnam News Agency, VentureOutsource.com, June 2007
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