Apple supplier Quanta Computer okayed for first plant in Vietnam

Nam Dinh has granted an investment certificate for Apple supplier Quanta Computer to build a $120 million factory in the northern province, the giant's first in Vietnam and its ninth worldwide.

The plant, located in My Thuan Industrial Park, is set to manufacture 1.3 million laptop and desktop computers in 2024, 2.6 million in 2025, 3.6 million in 2026, four million in 2027, and 4.5 million in 2028.

Local authorities issued the investment certificate after receiving Quanta Computer's application on Thursday, only 15 days after the northern province and the company signed an agreement on project development.

The MacBook contract manufacturer, listed on the Taiwan Stock Exchange (TWSE) as 2382, signed a deal with Nam Dinh authorities on April 21 to develop the 22.5-hectare plant.

The 48-year project will enjoy incentives, including tax exemption and lower corporate income tax, land lease and land use fees.

Construction of the 158-hectare My Thuan Industrial Park kicked off in November 2021 with an investment of VND1.62 trillion ($69.13 million). The IP has a prime location next to National Highways 21 and 21B, and only 80 kilometers from Hanoi and 100 kilometers from Hai Phong city, Vietnam's northern economic hubs. The facility is the first project in the industrial park.

Established in 1988, Quanta is a Global Fortune 500 company. The manufacturer reported 2022 net profit of NT$28.96 billion ($949.2 million), down 14% from 2021.

The Quanta move follows other Taiwanese electronics makers, including Foxconn, Pegatron, Wistron, Compal Electronics, and Inventec Corp. in increasing their investments in Vietnam in recent years.

The U.S.-China trade war has forced Taiwanese manufacturers to relocate their factories from mainland China to Southeast Asia, a delegation of the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) said while surveying sites in Vietnam's northern provinces and cities last month.