Foxconn to invest extra $53 mln in northern Vietnam

Taiwanese electronic giant Foxconn, a major supplier of Apple, will invest an additional $52.6 million in its project in Vietnam’s northern province of Bac Giang, raising the total investment to $382.6 million.

According to the investment certificate granted to the firm in late May, also the 11th amendment to its original license given in January 2016, Foxconn subsidiary New Wing Interconnect Technology Bac Giang will conduct the investment.

The extra investment will feature a new manufacturing site of 4,083 square meters (0.41 hectares) in Van Trung industrial park, while the two existing manufacturing sites cover 7.3 and 19.6 hectares respectively in the same industrial park.

With the new investment, New Wing Interconnect Technology Bac Giang will expand its annual output by 6.2 million connecting cables, raising the total to 550 million. The firm eyes to put its third manufacturing site into operation in October.

Overall, the company’s output is 1.59 billion items a year, also including 80.5 million wired earphones, 49 million electronic components for loudspeakers of mobile phones and desktops, 153.8 million packaging boxes, nine million electronic components for automobile and electric vehicle chargers, and 16 million RF antennas.

In the first five months of 2024, Bac Giang attracted 25 new FDI projects with registered capital of $200 million, and additional FDI capital of $475 million for 24 existing projects.

In January-May, Bac Giang’s index of industrial production (IIP) grew 24.64% year-on-year, above the country's average of 6.8%. Bac Giang, a new manufacturing hub in northern Vietnam, was among the best performers in the country.

Foxconn has been investing in Vietnam since 2007 and had invested $3.2 billion in the country prior to the latest investment.

The Taiwanese electronics giant recorded a total operating income of $6.7 billion from its affiliated companies in Vietnam in 2023, according Foxconn's annual report.

Foxconn’s Vietnam units recorded total operating profit of $280.8 million, while their total post-tax profit reached $305.4 million.

In May, James Wu, spokesperson for Foxconn, said the firm will focus on expanding production in China, India, Mexico, and Vietnam. “In Vietnam, we will focus on computing products,” Wu noted.