Yongjin Metal Technology (Vietnam) Company Limited, a subsidiary of China-based Yongjin Metal, kicked off the construction of a $125 million factory in the central province of Nghe An on Friday.
The 12.6-hectare plant, located in WHA Industrial Zone 1, was granted an investment license in November 2022. The project, named Tan Viet metal technology factory, is expected to enter operation in the second quarter of 2024, employing 300 people.
The facility’s annual capacity includes 180,000 tons of 2B high-quality 300 series cold rolled stainless steel and 80,000 tons of BA high-quality 300/400 series cold rolled stainless steel.
Once operational, the project can contribute about VND1 trillion ($42.59 million) to the state budget annually, Nghe An Chairman Nguyen Duc Trung said. He also lauded WHA Industrial Zone 1 for aiding investors in project implementation.
The project is Yongjin’s second investment in Vietnam. The first, with an area of 9.2 hectares and an investment of $132.5 million, entered operation in the Mekong Delta province of Tien Giang in March 2022. Besides, Yongjin has other manufacturing facilities in China and Thailand.
As of April 20, Nghe An province had attracted 135 foreign direct investment (FDI) projects with a total investment of $2.86 billion, the 30th-highest figure in Vietnam, according to the Ministry of Planning and Investment.
WHA Industrial Zone is a major industrial park in Nghe An province, invested by WHA Industrial Development, a leading industrial realty developer in Thailand. The 1,850-hectare facility has an investment of VND22 trillion ($939 million) and has completed the first phase of 498 hectares.
A major project in the industrial park is a $100 million investment by Foxconn, a key supplier for Apple. The Taiwanese business is scheduled to commence construction of the 48-hectare project in June 2023. Between July 2024 and October 2024, the Taiwan-based giant will conduct trial runs, then enter official operation in November 2024, according to the investment certificate.