27.11.2020, 07:25

Foxconn expands production in Vietnam with a $270 million investment

Foxconn, which already has plants in northern Vietnam, will soon establish a new local company in the country that will likely produce PC-related parts like displays, according to Nikkei.

The Taiwan-based company, which began the production of liquid crystal displays in Vietnam last week, aims to take advantage of the new Regional Comprehensive Economic Partnership (RCEP) agreement and hopes to boost its domestic production capacity, it added.

Foxconn produces TVs, telecom equipment, and computer-related products in Vietnam. Its chairman Young Liu in June said Vietnam was the company’s largest manufacturing hub in Southeast Asia.

Other Taiwanese electronics manufacturers Pegatron and Wistron, rivals to Foxconn, have also expanded to Vietnam.

Foxconn began investing in Vietnam during 2007 with plants in the northern provinces of Bac Ninh, Bac Giang and Vinh Phuc. Last year, the company poured more money into its Bac Giang facility and expanded into Quang Ninh, another northern province.

The company expects to export $6 billion worth of products from Vietnam this year, double that of last year. It eyes to create 50,000 jobs with an average salary of VND10-12 million ($433-519) a month.

Computers, electronics and parts were the second largest export category of Vietnam in the first 10 months this year at $36.44 billion, behind smartphones and parts, according to Vietnam Customs.

The biggest export markets for this category were China, the U.S., and the E.U.

By Dat Nguyen, VNExpress