Pegatron Vietnam Company Limited, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, kicked off the construction of a 5.04-hectare worker accommodation project in the northern city of Hai Phong on Tuesday.
The $68.3 million project was given in-principle approval in February 2022, featuring 10 high-rise buildings that can house 10,000 workers.
Pegatron aims to complete six buildings by the fourth quarter of 2024. While improving the livelihoods of workers, the project will also help the business reduce the cost of transporting workers and improve labor productivity, according to Pegatron.
The Pegatron project is the second in the northern coastal city of Hai Phong after LG Display that the municipality has leased land to build accommodation for workers, Le Trung Kien, head of the Hai Phong Economic Zone Authority, said at the event.
Pegatron’s project is also part of the government’s plan to build at least one million social houses for factory workers and low-income people from 2021-2030, he added.
The new project will be located in a 48-hectare area which Hai Phong has dedicated for the construction of 10,000 social housing units to accommodate 35,000 laborers in the Dinh Vu Economic Zone, he noted.
The 2,500-hectare economic zone, which has attracted investments of $7.5 billion, currently employs 18,000 laborers and that figure is expected to grow to 40,000-50,000 in 2030.
Kien also suggested businesses build policies to attract more workers, especially in terms of financial support for employees to purchase social housing.
Pegatron, a major supplier of Apple, currently operates two businesses in Vietnam, namely Pegatron Vietnam Company Limited (PVN) and Pegatron Technology Hai Phong Company Limited (PHP), focusing on manufacturing and selling consumer electronics, computers, related peripherals, communications equipment, and electronic parts. The two companies were established in March and April 2020, respectively.
Pegatron’s latest investment in Vietnam was to pour $100 million into PVN in September 2022, according to the business’ annual report for 2022.
Its consolidated financial report shows that PVN recorded a net profit of TWD8.37 million ($272,630), while PHP posted a net loss of TWD15.12 million ($492,300).