Hanoi: Multinational electronic companies are making moves to increase investment and expand production, to help Ho Chin Minh (HCM) City become a leading production hub.
Vo Van Hoan, vice-chairman of the HCM City people’s committee said the city was home to 50 foreign direct investment (FDI) projects with an investment capital of more than US$5bil (RM21bil) in an area of more than 326ha.
Seventeen are electronic projects with an investment capital of US$20mil located in industrial parks, export processing zones and high-tech zones.
The city has lured many global leading brands including Intel, Samsung, First Solar, Furukawa Automotive Parts, and Renesas.
Early this year, Intel and Samsung simultaneously increased their investment and committed to long-term investment in Vietnam, despite current restrictions caused by the Covid-19 pandemic.
Intel Products Vietnam Company had increased its investment capital by US$475mil, bringing its total investment capital to more than US$1.5bil. Alan Danner, CFO of Intel Vietnam said Intel Vietnam has manufactured and exported more than two billion microprocessor and semiconductor products. By the end of last year, total export value reached US$50bil and created nearly 7,000 jobs.
This has helped Intel increase its production of 5G products, Intel Core processors with Intel Hybrid technology, and 10th generation Intel Core processors.
Samsung Electronics HCMC CE Complex Co Ltd has agreed to adjust project information and transform their business from a high-tech enterprise to an export processing enterprise.
Samsung’s project in HCM City Hi-Tech Park was first licensed on Sept 25,2014.
The investment capital has now reached over US$2bil.
The project was built on an area of more than 93ha with a production capacity of 19 million products per year, bringing an annual average turnover of US$4.2bil. Of this figure, import value was more than US$2.5bil and export value US$3.6bil. Experts said the transformation not only generates incentives for export, but also provide practical support to businesses in the supply chain of Samsung, especially businesses in the field of supporting industry in HCM City and neighbouring areas.
Hua Quoc Hung, head of the management board of industrial and export processing zones of HCM City said there are 45 FDI projects in the electronics sector operating in industrial zones and export processing zones with an investment capital of more than US$1.7bil. — Viet Nam News/ANN
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