FDI capital is heading for technology sector

LG Display has decided to pour an additional $1.1 billion to expand the factory in Hai Phong. The plans were shown last month. 

Eugene Kim, president of Huneed Technologies, talked about the installation of an electrical wire production line after he made a fact-finding trip to the HCMC Hi-tech Park (SHTP).

Kim said his company was attending a competition on supplying components to Boeing and if it wins, it will set up a production base in SHTP.

According to SHTP’s head of the board of management Le Hoai Quoc, FDI attraction to the hi-tech park is satisfactory with 130 projects having been licensed in the last 15 years, capitalized at $7 billion. 

Of these, 10 leading technology companies including Microsoft, Nidec, Jabil, Nipro and Samsung make high-added value products at their factories there.

Samsung alone has invested $2 billion in making household-use electrical appliances. It has established an R&D center with capital of hundreds of millions of dollars.

Sherry Boger, CEO of Intel Products Vietnam, said that the factory in Vietnam manufactures a wide range of products, including SOC (system on chip) which requires complex technology. The products made at the factories all bear the ‘made in Vietnam’ label on the world market.

Experts say that HCMC has great advantages in attracting FDI to the technology sector thanks to its position as a leading economic center in Vietnam and the high-quality labor force. 

In addition, the city is attracting different sources to develop hi-tech projects and build a smart city in the 2017-2020 period. 

Vietnam has attracted more technology, electronics and smartphone manufacturers who are coming to set up production bases and make products for export thanks to the advantageous position and competitive production costs.

Chinhphu.vn reported that LG Display Vietnam Hai Phong was inaugurated on December 4. The $1.5 billion project will manufacture OLED screens for mobile devices such as smartphones, smart watches and tablets.

Bosch has announced that it will invest 58 million euros more in its operational factory in Dong Nai province, raising its total investment capital to 321 million euros. 

Peter Tyroller from Bosch said the production expansion aims to satisfy increased demand from automobile manufacturers in Asia-Pacific and North America.

Also in Dong Nai province, Schaeffler Group inaugurated a 55 million euro factory in Amata IZ earlier this month.

Of electronics conglomerates, Samsung is the biggest investor with committed capital of $17 billion. Its export turnover is expected to reach $50 billion this year.

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