Quang Ninh province granted investment certificates to two projects proposed by Apple supplier Foxconn with total registered capital of $246 million on Thursday, just 12 hours after the applications were submitted, rather than the usual 14-day process.
The 6.3-hectare FECV Foxconn Quang Ninh factory, with an investment of $200.24 million, is set to enter operation in January 2025, employing 1,200 people. The factory will manufacture and assemble electronic components, chargers, and charger controllers for electric vehicles.
The 4.1-hectare FMMV Foxconn Quang Ninh plant, with an investment of $46 million, is scheduled to enter operation in October 2024, employing 700 people. It will manufacture components for communications and IT products.
Both projects are located in Song Khoai Industrial Park. The facility, invested by Thailand’s biggest industrial developer Amata, is looking to attract $1 billion in 12 projects this year, raising the total investments in the park to $2.6 billion. Amata’s three operational IPs in Vietnam are the 513-hectare Amata City Bien Hoa and 410-hectare Amata City Long Thanh, both in Dong Nai province near Ho Chi Minh City, and the 710-hectare Amata City Halong, also known as Song Khoai Industrial Park, in Quang Ninh.
Speaking at the ceremony, a Foxconn executive lauded the northern coastal province’s business and natural environment, especially leading the Provincial Competitiveness Index (PCI) for six years in a row.
The PCI 2022, released by the VCCI and USAID on Tuesday, is the 18th edition of the ranking based on the business environment and improvements to administrative procedures in cities and provinces across Vietnam.
In reply, Quang Ninh Acting Chairman Cao Tuong Huy appreciated Foxconn’s investment and called on the Taiwan-based giant to invest more in the province. With the new projects, Foxconn now has three projects in Quang Ninh province with total registered capital of $300 million, or 10% of its total investment in Vietnam, the executive added.
Hon Hai Precision Industry Co., Ltd., also known as Foxconn, recorded a post-tax profit of $318.9 million from affiliated companies in Vietnam in 2022, according to the Taiwanese electronics giant's annual report.
Regarding operating income, 16 Foxconn units in Vietnam recorded a total of $7.95 billion. Fuyu accounted for the biggest portion with $2.48 billion; followed by Fuhong Precision Component (Bac Giang) with $1.9 billion, and Funing Precision Component with $1.52 billion.
Foxconn has joined the trend of Apple suppliers expanding in Vietnam, an emerging manufacturing hub for the global electronics industry, with a new investment of $100 million in Nghe An province. The Taiwan-based giant is set to commence construction of the 48-hectare project in June 2023. Between July 2024 and October 2024, it will conduct trial runs, then enter official operation in November 2024, according to the investment certificate.