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Bulk FDI inflow fosters electronics export growth
Quoc Hung
Thursday,  Apr 4, 2013,22:05 (GMT+7)

Bulk FDI inflow fosters electronics export growth

Quoc Hung

By Quoc Hung - The Saigon Times Daily

HCMC – Export of electronics products is forecast to grow rapidly in the coming time given the massive foreign direct investment (FDI) flow into this sector.

Vietnam has been luring funds from the giants in hi-tech, electronics and research & development (R&D), which is a bright spot in the FDI attraction picture, said the property consultancy firm CBRE Vietnam.

CBRE has assisted Panasonic in setting up the project Eco-Solution Factory in Binh Duong with total investment of some US$38 million. Following the success of its component factory in the northern region, the Japanese electronics corporation has decided to move to the south and the new factory is scheduled to start operations in late 2014.

CBRE has also helped LG Electronics select a suitable location for a factory and deal with the issues of labor and tax incentives. The South Korean corporation intends to spend US$300 million building a factory in Haiphong, where labor cost is still low and the fight for employees is not so harsh as in Bac Ninh and Bac Giang.

Early this year, Fuji Xerox of Japan began work on a US$119-million factory specializing in production of printers and photocopiers at the urban and industrial complex VSIP Haiphong. It is expected that the factory will be inaugurated in August and start operations in November.

During its first phase, the factory will have a capacity of two million products per year, creating jobs for around 500 workers. This will be the first production facility of Fuji Xerox in Vietnam.

These new projects together with the operational ones will contribute to the tremendous growth in electronics export in the coming time and prove electronics the major export item of Vietnam, said experts.

Heavy investment in electronics in recent years has helped this sector win the first place in terms of exports from textile-garment in 2012 and the first quarter of this year.

Foreign-invested enterprises significantly contributed to export of cell phones, electronics products, computers and components last year, with over US$20.52 billion.

Samsung Electronics Vietnam alone exported US$12.7 billion worth of cell phones, twice as much as the figure of US$6 billion in 2011. Intel of the U.S., Canon, Nidec and Fujitsu of Japan and Foxconn of Taiwan also made great contributions, according to the General Statistics Office.

Samsung has recently started work on a new production facility in Thai Nguyen with total investment of US$2 billion, which may be raised to US$3.2 billion in the future.

Winter Corporation of Taiwan, a producer of touch screens for iPad and iPhone, last year poured an additional US$870 million into its factory at Quang Chau Industrial Park in Bac Giang, taking its total investment in Vietnam to US$1.12 billion.

With the investment increase of Samsung and Wintek, along with the factory of Nokia under construction in Bac Ninh and the mobile phone plant of Kyocera in Hung Yen, robust electronics export growth is in sight.

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