Meiko Electronics to add $15 mln capital, speed up Vietnam project

Japan-headquartered Meiko Electronics will make an additional capital contribution of $15 million in Vietnamese subsidiary Meiko Electronics Hoa Binh Co. Ltd, designer and manufacturer of printed circuit boards (PCB).

In a Monday statement, Meiko Electronics said the additional capital contribution, decided in January, will be made later this month. Currently, the Vietnamese subsidiary has a charter capital of $20 million.

The additional investment was prompted by increasing demand, thanks to customers advancing supply chain development in the ASEAN region, which has exceeded its production capacity in Vietnam.

Meiko Electronics officially entered Vietnam in 2006 with a $300 million factory on the outskirts of Hanoi.

In April 2024, it broke ground for a factory to produce PCB in the northern province of Hoa Binh, its fifth facility in Vietnam. It said it would invest VND4.66 trillion ($186.4 million) in the factory, which covers 9.2 hectares in Bo Trai Song Da industrial park.

The total investment will be raised to $500 million when work begins on a second workshop within the factory, the firm added.

The factories will produce electronic circuits for peripheral devices, computers, electronic home appliances, audio-visual equipment, solar cells, microprocessor chips, and controllers.

Vietnam has emerged as an attractive destination for PCB investors. In June 2024, Taiwanese electronic giant Foxconn, a major Apple supplier, received documents to invest $383.3 million in a new project to manufacture PCB in the northern province of Bac Ninh.

The factory, called FCPV Foxconn Bac Ninh, will cover 14.3 hectares at Nam Son-Hap Linh industrial park, a facility invested by one of Vietnam’s leading industrial real estate development companies, Kinh Bac City Development Holding Corporation.

In May 2024, Victory Giant Technology, a Chinese electronics major, said it would invest $260 million in a production base in Vietnam’s northern province of Bac Ninh. In a filing with the Shenzhen Stock Exchange, the company said the move aimed to meet the diverse needs of overseas customers per trends and changes in international trade.