Home / Investment / News
Apple partner Pegatron mulls US$1-billion investment in hi-tech projects in Vietnam
Nguyen Tung 00:51, 2020/09/20
These projects are expected to create 22,500 direct jobs and manufacture products that are supplied to Microsoft, Sony, Lenovo and Apple.

Taiwan-based Pegatron, manufacturing partner of the world’s major tech firms such as Microsoft, Apple or Sony, has plans to invest US$1 billion to build a manufacturing complex at Nam Dinh Vu industrial park in the northern city of Hai Phong, according to a report from the Ministry of Planning and Investment (MPI).

 Taiwan-based Pegatron is set to invest US$1 billion to build a manufacturing plan in Vietnam. 

Following the report, the investment would be channeled into three projects which are: 

The first one is the Pegatron Vietnam 1 that will have an investment of US$19 million. The project already acquired investment license from the Management Board of Hai Phong economic zone on March 17.

For the Pegatron Vietnam 2 (US$481 million), the investor is currently applying for an investment license.

The Pegatron Vietnam 3 (US$500 million) is scheduled to be implemented in the 2026 – 2027 period.

Meanwhile, Pegatron is also planning to move its R&D center from China to Vietnam in an appropriate time which should be around the realization of the Pegatron Vietnam 3 in 2026 – 2027.

At present, the Taiwanese firm is submitting a proposal of the Pegatron Vietnam 2 to the Management Board of Hai Phong economic zone. Once completed, the plant would produce household appliances, computers, phones, electronic components, among others.

These projects are expected to create 22,500 direct jobs and contribute around VND100 billion (US$4.31 million) to the state budget per year. 

With the move, Pegatron would join Apple’s two other iPhone assemblers -- Wistron Corp. and Hon Hai Precision Industry Co. -- in developing manufacturing facilities or building extra capacity in Vietnam.

The report also revealed that the MPI is working with Universal Global Technology, a member of ASE Technology Holding (Taiwan, China), in investing in a manufacturing plant specialized in making circuit board for watches, smart phones, headphones for Lenovo and Samsung.

The total investment of the first phase of the project is estimated at US$200 million, and the amount could rise to US$400 million after three years in operation.

The MPI suggested these hi-tech projects would lay the foundation for Vietnam to further attract investors being suppliers of transnational tech giants and form an electronic production hub in Hai Phong.

Taiwanese companies have been particularly active in their search for options, with companies from Inventec Corp. to Foxconn Technology Group either moving production back home or to more distant regions around Asia, seeking to escape US tariffs.

Head of the Taipei Economic and Cultural Office in Hanoi Richard Shi in a meeting with the MPI’s representatives on August 31 said a second wave of investment from Taiwanese investors to Vietnam is happening following the first one in the 1990s.

RELATED NEWS
TAG: Vietnam Apple Pegatron Sony Lenovo Microsoft Taiwan China hi-tech projects covid-19 trade war United States
Other news
15:49, 2020/49/20
Samsung heir to seek business opportunities in 3-day Vietnam trip
Samsung Vice Chairman is scheduled to meet Vietnam’s Prime Minister Nguyen Xuan Phuc during the visit to discuss business and investment opportunities.
12:05, 2020/05/19
Samsung heir to discuss investment plans in trip to Vietnam this week
Vice Chairman of Samsung Lee Jae-yong is set to meet Prime Minister Nguyen Xuan Phuc during his trip to Vietnam.
14:20, 2020/20/28
Urgent steps needed for Vietnam to attract high quality FDI
While global FDI is projected to decline by 40% year-on-year in 2020, FDI commitments to Vietnam in the first eight months dropped 13.7% year-on-year to US$19.54 billion.
14:27, 2020/27/26
Actual FDI in Vietnam down 3.2% to US$13.76 billion in Jan-Sept
FDI commitments in the January – September period totaled US$21.2 billion, down nearly 19% year-on-year.
13:08, 2020/08/22
Only 5% FDI projects in Vietnam use high technologies
Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.
08:39, 2020/39/22
Hyundai starts building US$138-million automobile plant in Vietnam
The plant, considered one of the most important projects of Hyundai, is invested with an estimated VND3.2 trillion (US$137.44 million) and able to produce 100,000 vehicles per year.