VietNamNet Bridge – The low investment rate and cheap labor
force have been cited the greatest advantages that help Vietnam attract big
technology firms from the US and South Korea.
Intel, Samsung Electronics and
Jabil Circuit (JBL) are the three big names among the enterprises which have
been and considering expanding their business in Vietnam.
Vietnam’s mobile phone and
household electronics have increased by 91 percent over the last 10 months to
16 billion dollars, making Vietnam the country with the highest export turnover
at that time.
The high growth enjoyed by
technology groups has helped ease the investors’ worry about the Vietnam’s
economy which has been experiencing the toughest period since 1999.
With the investment rates
increasing rapidly in Singapore and Thailand, the escalating political tense
between Japan and China, experts have every reason to predict about a new wave
of relocating production lines to Vietnam.
According to the US Trade
Commission, electronics exports, including computer modems, fixed line
telephone sets and mobile phone sets to the US market increased by 58 percent
in the first eight months of the year.
This is really an encouraging
result, if noting that during the same time, Chinese exports to the US
increased by 11 percent, Malaysian four percent, Thai five percent and
Indonesian decreased by 16 percent.
Jabil Circuit, the electronic
part manufacturer headquartered in Florida, plans to double the investment
capital of its card payment machine and network router factory in HCM City to
100 million dollars in the next three years.
According to Mike Matthes, a
senior executive of Jabil Circuit, the company in Vietnam would employ some
5000 workers in the next five years. The current number is 1400.
Apple, Cisco and Research and
Motion (RIM) have been the biggest clients of Jabil Circuit.
As for Samsung, the South Korean
electronics manufacturer is considering pouring 700 million dollars into a new
mobile phone factory in the north of Vietnam.
Yonhap News has reported that the
plan would open the second investment stage of the giant in Vietnam. The first
factory, also located in the north of Vietnam, has become operational with the
capacity of 150 million in equipment a year.
Japanese Nidec Corp is now the
world’s biggest manufacturer of motors for hard disk drives, and has revealed
that it would set up the seventh factory in HCM City in late 2012. Once the
factory is put into operation, the number of workers to be employed by Nidec
Corp in the city would be 25,000.
Thoi bao Kinh te Saigon in late
October reported that Nidec started the construction of a new factory in the
Giao Long Industrial Zone in Chau Thanh district of the southern province of
Ben Tre, after developing a series of projects in HCM City.
Nidec Tosok Precision Vietnam, a
subsidiary of Nidec group would set up a factory on an area of four hectares
with the total investment capital of 39.6 million dollars. It would specialize
in making parts and accessories for car gearbox.
The factory has been scheduled to
become operational in September 2013, while all of its products would be
exported.
Than Trong Phuc, Managing
Director of DFJ Vina Capital in HCM City, when answering the interview to
Bloomberg, said that Vietnam has acquired the technology product market shares
from other Asian countries. Vietnam has some advantages to do that, but its
biggest advantage lies in the reasonable labor cost.
DNSG
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