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More foreign invested electronics projects to kick off in Vietnam   2012-05-26 - TBKTSG

Vietnamese electronics export turnover is forecasted to increase rapidly in the time to come, when a lot of foreign invested electronics projects become operational.

 

A source from the Hai Phong Economic Zone Board of Management (HEZA), a big Japanese electronics manufacturer is discussing with HEZA about a big printing machine factory project in the city.



Declining to reveal the name of the investor, but HEZA said the project has the investment capital of 100 million dollars which would focus on manufacturing printing machines for export. Currently, the investor is following necessary procedures to obtain the investment license. It is expected that HEZA would grant the investment license to the investor in June or July.



Besides the above said project in Hai Phong City, big electronics and mobile phone manufacturers are also considering setting up their production bases in Vietnam or expanding the operational projects worth hundreds of millions of dollars per project.



Especially, Taiwanese Wintek Company, which makes touch screens for iPad and iPhone, has decided to inject 870 million dollars more in the project in Quang Chau Industrial Zone in the northern province of Bac Giang. With the added capital, Wintek has raised its total investment capital in Vietnam to 1.12 billion dollars just after one year of operation.



The move by Wintek would allow it to have more money to import equipment and production lines, as well as expand the production premises, so as to increase the production and provide accessories to big phone manufacturers.



Meanwhile, the big mobile phone manufacturer Nokia in late April 2012 announced the kicking off of its mobile phone factory in VSIP Industrial Zone in Bac Ninh which has the investment capital of 200 million euro. It is expected to become operational in 2013 and create 10,000 jobs.



The announcement was released just several months after Nokia decided to shut down and narrow the scale of some of its factories in Europe and dismissed 4000 workers to cut down expenses.



Therefore, the decision by Nokia to set up a production base in Vietnam could be seen as a new move in its strategy of turning Vietnam into a link in the leading mobile phone manufacturer’s supply chain.



Meanwhile, the hi-tech electronic part and mobile phone manufacturing project of Japanese Kyocera has been scheduled to kick off in June in Thang Long 2 Industrial Zone in Hung Yen province.



The factory has the investment capital of 55 million dollars for the first phase, which would become operational by August 2013. Though the first phase of the project has not started, Kyocera has been preparing for the second phase, when it would inject 195 million dollars more to expand the production of SMD Package products, mobile phones and software products.



Experts have said they can see a new tendency of setting electronics projects in Vietnam instead of China or other Asian countries. This can be seen in the presence of many leading electronics groups of the world, including South Korean Samsung, the US Intel, Japanese Panasonic, Canon and Fujitsu and Taiwanese Foxconn, who have poured big capital into their projects in the country.



Experts have predicted the sharp increases of electronic products in the time to come, when the foreign invested enterprises churn out their products.



According to the General Department of Customs, in the past, mobile phone and electronics part exports hovered around 300-400 million dollars a month. However, since last July, the export turnover has soared to 1.3 billion dollars, turning electronics into the product with the second biggest export turnover in Vietnam since September 2011.



Samsung’s project in Bac Ninh exported 6 billion dollars worth of electronics in 2011, while it plans to export 1 billion dollars a month this year.



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