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Taiwan's Hon Hai Group to invest US$5 billion in Vietnam

Taiwan's Hon Hai Group to invest US$5 billion in Vietnam

Taiwan's Hon Hai Technology Group plans to invest US$5 billion (euro3.67 billion) in Vietnam, dramatically increasing its commitment to a country drawing growing attention from high-tech manufacturers, an official said Thursday.
In an agreement signed in Hanoi on Wednesday, Hon Hai agreed to quintuple its planned investment in Vietnam, where it intends to build factories in six provinces across the country over the next five years, said Dang Van Hien of the Ministry of Planning and Investment.
Hon Hai is the world's No.1 contract electronics manufacturer by revenue. Its customers include Hewlett-Packard Co. and Apple Inc., and it produces computer components and other electronic products at plants in Asia, Latin America and Europe.
Wednesday's agreement was signed by Hon Hai Chairman Terry Gou and Minister of Planning and Investment Vo Hong Phuc. It underscored Vietnam's recent success at luring high-tech manufacturers to the country.
Last year, Intel Corp. said it would invest US$1 billion (euro0.73 billion) in a semiconductor testing and assembly plant under construction in Ho Chi Minh City.
Vietnam has one of the world's fastest-growing economies, inexpensive labor costs and a large supply of young, well educated workers. Its appeal to investors has also grown since it joined the World Trade Organization in January.
Tuesday, Hon Hai inaugurated two factories in Que Vo Industrial Park in northern Bac Ninh province, where it will produce main boards and camera modules. It is also building two plants in neighboring Bac Giang province.
The company is investing US$163 million (euro119.58 million) in those four plants. It already has factories in Taiwan, China, Brazil, the Czech Republic and Ireland.
The Hon Hai group, which includes Foxconn International Holdings Ltd., makes iPods for Apple Computer Inc. and mobile phones for Nokia Corp.
This year, Vietnam has approved foreign investment projects worth more than US$8 billion (euro5.87 billion). Last year, foreign investment reached a record of US$10.2 billion (euro7.48 billion).


Updated : 2021-06-18 08:17 GMT+08:00