Apple supplier Pegatron looks to expand in Vietnam, beyond
Taiwan-headquartered Pegatron, which makes about 20-30% of iPhones, is putting an emphasis on expanding its factories out of China, which began pandemic-related lockdowns in several cities this April.
"We faced Covid controls for two months. We couldn't have assessed that in advance, so that makes me emphasize our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilization of our production capacity," Pegatron president Liao Syh-jang was quoted by Reuters as telling an annual shareholder meeting Wednesday in Taipei.
The Apple assembler in April suspended operations at its Shanghai and Kunshan plants in mainland China due to Covid-19 lockdowns, affecting production and deliveries.
In recent years, Pegatron has been seeking to expand production in Southeast Asia and North America. In September 2020, the Taiwanese major announced its plans to invest $1 billion in three hi-tech product factories in northern Vietnam, located in Nam Dinh Vu Industrial Park in Hai Phong city to make computers, electronic devices, communications equipment, electronic components and circuit boards for global tech giants. The first plant is already operational.
Also in Hai Phong, the Apple, Microsoft, and Sony supplier got a license this February to build a $68.3 million housing project in Dinh Vu-Cat Hai Economic Zone for its workers. It is designed to accommodate 10,000 employees.
Taiwanese firm Foxconn, the world's largest contract electronics maker that also assembles iPhones, made its foray into Vietnam in 2007 and had invested $1.5 billion as of December 2020. Foxconn injected another $270 million in January last year to expand its laptop and tablet assembly capacity in the country. The major currently employs about 60,000 people in the country.
Apple does not have a plant in Vietnam but the Southeast Asian country is the American giant’s largest manufacturing base outside mainland China via its suppliers, including Foxconn, Pegatron, Luxshare, Goertek, ASE Technology, and Wistron. Luxshare is producing AirPods, BYD is preparing to make iPads, while Goertek is embracing bold expansions in the north.
Also in northern Vietnam, U.S.-based Amkor Technology Inc., a global semiconductor product packaging and test services provider, is investing as much as $1.6 billion until 2035 to build a state-of-the-art facility as an important part of the major’s worldwide network.
American giant chipmaker Intel has so far invested $1.5 billion in Vietnam since its 2006 inception here, making it the largest U.S. technology investor. The corporation has plans to enlarge business and investment in Vietnam, Intel CEO Patrick Gelsinger told Vietnamese Prime Minister Pham Minh Chinh on May 27 in Hanoi.
“Vietnam is an attractive destination for foreign investors as this is a dynamic economy and a promising market,” Gelsinger said.
At present, Ju Teng International Holdings Ltd., a global supplier of casings products for notebook computer manufacturers, original equipment manufacturers and original design manufacturers, is preparing to start construction of its $200 million large-scale factory in Nghe An province, central Vietnam.
The factory, on a 120-hectare site in Hoang Mai 1 Industrial Park, will make electronic device casings and automobile accessories. Trial operation is set for April 2023, followed by official production scheduled for October the same year.
- Read More
Sumitomo subsidiary acquires 49% stake in Vietnam’s top crop protection firm
Summit Agro International Ltd., a member of Japanese conglomerate Sumitomo, has acquired a 49% stake in Hop Tri Investment Corporation, a leading crop protection firm in Vietnam.
Companies - Fri, November 22, 2024 | 8:25 pm GMT+7
E-wallets get thin as banking apps prosper in Vietnam
E-wallets appear unable to compete strongly against online banking applications in Vietnam, several market observers say.
Banking - Fri, November 22, 2024 | 7:15 pm GMT+7
Use social media influencers in targeted manner for e-commerce success: Vietnam execs
Vietnamese companies should use new generation influencers in a targeted manner, prioritizing specific market segments, standardizing quality and focusing on strong product categories to achieve e-commerce success, says Nguyen Ngoc Luan, CEO of Meet More Coffee.
Companies - Fri, November 22, 2024 | 4:26 pm GMT+7
VinFast’s parent, PV Power partner to speed up charging station expansion
Vietnamese private conglomerate Vingroup, the parent firm of electric vehicle manufacturer VinFast, and state-controlled PV Power have entered an agreement to develop charging stations across the country and promote rooftop solar installations.
Companies - Fri, November 22, 2024 | 4:11 pm GMT+7
Petrovietnam, Petronas to boost renewable energy cooperation
Petrovietnam and Petronas, two state-owned oil & gas giants of Vietnam and Malaysia, will further cooperate in renewable energy, including exchange of information, knowledge, and experiences.
Energy - Fri, November 22, 2024 | 2:59 pm GMT+7
FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker
FTSE Vietnam ETF is forecast to strongly buy in several Vietnamese heavyweights such as Vinhomes, Hoa Phat, and Vietcombank in its upcoming portfolio reshuffle.
Finance - Fri, November 22, 2024 | 2:45 pm GMT+7
$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod
A VND17.3 trillion ($681 million) urban area project that is drawing the interest of major realty developer Sun Group has received an in-principle approval from Khanh Hoa province's administration.
Real Estate - Fri, November 22, 2024 | 1:53 pm GMT+7
Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners
Allegations of Vietnam tightening visa policies and control over foreigners are "baseless", Foreign Ministry spokeswoman Pham Thu Hang said Thursday.
Politics - Fri, November 22, 2024 | 11:29 am GMT+7
Thailand-invested food giant CP fined $31,000 for environmental violations
Vietnam’s southern province of Dong Nai has issued a fine of VND790 million ($31,080) to Thailand-invested C.P. Vietnam Corporation for violating environmental regulations.
Companies - Fri, November 22, 2024 | 10:48 am GMT+7
Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases
Nguyen Yen Linh, the daughter of chairman Nguyen Dang Quang of consumer goods giant Masan Group (HoSE: MSN), has purchased nearly 8.5 million MSN shares over the past three weeks, meeting 85% of her target.
Finance - Fri, November 22, 2024 | 10:27 am GMT+7
PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty
The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.
Finance - Fri, November 22, 2024 | 8:25 am GMT+7
Central Vietnam province plans to build $2.4 bln LNG power plant from 2031
The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.
Energy - Thu, November 21, 2024 | 10:41 pm GMT+7
Indonesia, France step up cooperation in economy, defence
Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.
Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7
Thai economy to maintain upward momentum in 2025
The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.
Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7
Former parliament chairman Vuong Dinh Hue warned for violations
The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.
Politics - Thu, November 21, 2024 | 10:10 pm GMT+7
Sumitomo insists on building LNG power plant in central Vietnam
Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.
Energy - Thu, November 21, 2024 | 8:53 pm GMT+7