Hon Hai (Foxconn) Vietnam mega-site update

Taiwanese firm Hon Hai (also known by the trade name Foxconn) recently announced plans for a US$5 billion five-year expansion in Vietnam. This is considerably more than its previous Vietnam investment announcement of US$1 billion. To date, Hon Hai has already invested $200 million in Vietnam.

It is reported Vietnam can provide Hon Hai with 2,000 hectares of land.

Hon Hai’s Vietnam production facilities have the potential of becoming the Taiwanese group’s largest manufacturing sites. Depending on future Hon Hai customer demand, the Company plans to employ approximately 300,000 employees in Vietnam over the course of the next five years. This could translate to a Vietnamese geographic footprint / scale at least equal to or, possibly larger than, Hon Hai’s current industry mega-site at Longhua in Shenzhen, China.

Vietnam mega-sites

The first mega-site in Bac Ninh Province (40km north of Hanoi) began production this week. Initially, this soon to be mega-site was for the production of camera modules; PC motherboards / modules, and cable connectors. The Bac Ninh site is also part of the expansion of Premier Image (acquired by Hon Hai last year) to produce digital cameras.

Sources in industry believe the Bac Ninh mega-site will likely allow Hon Hai to attract more outsourcing orders for camera module production.

The second Hon Hai mega-site to be located in Vietnam will be constructed in Bac Giang Province where Hon Hai is also licensed to build an industrial, residential golf course complex.

More to come

Hon Hai’s future planned mega-sites in China, such as Wuhan (central China) and Huaian (430km from Shanghai), are each also likely to be larger than the Longhua facilities (based on land area).

Source: Hon Hai, industry contacts

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