Samsung's New Vietnam Handset Plant ...
... and Foxconn's continued ecpansion.
• Vietnam has yet to see any mobile phone manufacturers operating in the country.
• Samsung: In March last year, Samsung won a licence to establish a $670 million facility in northern Bac Ninh province – the firm’s fifth manufacturing base globally after Brazil, China, India and Korea. Samsung’s Vietnam-based facility will be able to supply 30 million units per year and the production output for domestic and export markets will be able to expand to 100 million units per year. The facility is also under construction. [Edit: last time I heeard an opening date it was by end of March 2009].
• Foxconn: With initial investment of $200 million, Foxconn’s new factory, which will be able to produce nearly 90 million units per year, will become the second foreign-invested facility in Vietnam to produce mobile phone handsets, after Korea’s Samsung. The new facility will be built on the 485 hectare Binh Xuyen 2 Industrial Park, the developer of which is Fuchuan, a Foxconn subsidiary. Binh Xuyen 2 is designed to accommodate Foxconn and its suppliers to locate manufacturing facilities in Vinh Phuc province, about 50 kilometres north-west of Hanoi. Prime Minister Nguyen Tan Dung agreed to provide Foxconn with preferential tax schemes including a 10 per cent corporate income tax for the project’s life compared to the normal 25 per cent as the project is regarded as hi-tech manufacturing. In 2007, Foxconn excited the Vietnamese government with its investment plans by announcing it would pump more than $5 billion into the country within five years to make it one of its largest manufacturing bases in the world. In August, 2008 Foxconn opened two hi-tech factories with total investment of $80 million in Bac Ninh to produce cameras, computers and electronic appliances.
• About Foxcon: Foxconn is the trade name of the Taiwan based firm Hon Hai Precision Industry Co. (Ltd.) (LSE: HHPD). Foxconn is the largest manufacturer of electronics and computer components worldwide, and mainly manufactures on contract to other companies. Foxconn produces the Mac mini, the iPod and the iPhone for Apple Computer; Intel-branded motherboards for Intel Corp.; various orders for American computer retailers Dell, Inc. and Hewlett Packard; the PlayStation 2 and PlayStation 3 for Sony; the Wii for Nintendo; the Xbox 360 for Microsoft, cell phones for Motorola, Sony Ericsson, and Nokia modules, and the Amazon Kindle. Foxconn mainly manufactures in China; in 2007 it employed 450,000 people there and was China's largest exporter.
>> Foxconn Making Good on Its Ambitious Promises
Vietnam Investment Review
24-2-2009
vir.com.vn
Northern Vinh Phuc local government last week licenced leading global IT contractor Foxconn to build a low-cost mobile phone handset manufacturing plant in the province.
Vietnam’s hugely promising mobile market is a big plus for Foxconn
With initial investment of $200 million, Foxconn’s new factory, which will be able to produce nearly 90 million units per year, will become the second foreign-invested facility in Vietnam to produce mobile phone handsets, after Korea’s Samsung.
The new facility will be built on the 485 hectare Binh Xuyen 2 Industrial Park, the developer of which is Fuchuan, a Foxconn subsidiary. Binh Xuyen 2 is designed to accommodate Foxconn and its suppliers to locate manufacturing facilities in Vinh Phuc province, about 50 kilometres north-west of Hanoi.
Prime Minister Nguyen Tan Dung agreed to provide Foxconn with preferential tax schemes including a 10 per cent corporate income tax for the project’s life compared to the normal 25 per cent as the project is regarded as hi-tech manufacturing.
The new licence reflects Foxconn’s commitments to projects in Vietnam despite the ongoing global economic downturn and will likely heat-up Vietnam’s growing market of more than 80 million mobile phone subscribers.
In 2007, Foxconn excited the Vietnamese government with its investment plans by announcing it would pump more than $5 billion into the country within five years to make it one of its largest manufacturing bases in the world. In August, 2008 Foxconn opened two hi-tech factories with total investment of $80 million in Bac Ninh to produce cameras, computers and electronic appliances.
Despite a fast-growing mobile phone market, Vietnam has yet to see any mobile phone manufacturers operating in the country. Domestic private firm, Thuan Phat, which was licenced at the end of 2007, started building its $70 million mobile phone handset facility in Hanoi’s Hoa Lac Hitech Park in January, 2008. Construction has yet to be completed. Thuan Phat plans to supply the domestic market with three million handsets per year under Germany’s BenQ-Siemens brands.
In March last year, Samsung won a licence to establish a $670 million facility in northern Bac Ninh province – the firm’s fifth manufacturing base globally after Brazil, China, India and Korea. Samsung’s Vietnam-based facility will be able to supply 30 million units per year and the production output for domestic and export markets will be able to expand to 100 million units per year. The facility is also under construction.
Meanwhile, Vietnam’s first recognised mobile phone handset manufacturer, VinaMobi Vietnam, a $25 million joint venture between a local firm and Singapore’s Zentek Technology in Danang was terminated in May, 2007, as the venture failed to implement its project commitments. Licenced in 2004, VinaMobi Vietnam aimed to produce 300,000 low-cost mobile phone handsets per year to be marketed in 2005. ###
- Eric - |
