Chinese giant Goertek’s proposed investment in an electronic, network and multimedia equipment factory in Bac Ninh province has been approved.
The new project, located in Nam Son-Hap Linh Industrial Park, is set to employ 50,000 people, the provincial industrial zone authority said on Monday.
Covering 51.5 hectares, it will feature 29.5 hectares for manufacturing, 10.3 hectares for tree planting, and 11.67 hectares for traffic infrastructure.
Goertek entered Vietnam in 2013 with its first project in Que Vo Industrial Park, also in the northern province. After 10 years, the giant has invested over $625 million in Bac Ninh, becoming one of its biggest foreign investors and employing 40,000 people, according to provincial data. Its investments in Que Vo IP were raised to $565.7 million in March 2022.
Besides activities in Que Vo IP, the Chinese group marked its expansion in Bac Ninh with a project in the 306-hectare Nam Son-Hap Linh Industrial Park by signing a deal in February to lease 62.7 hectares.
Vietnamese industrial developer Kinh Bac City Development Holding Corp, listed on the Ho Chi Minh Stock Exchange as KBC, is the operator of Nam Son-Hap Linh IP. It said Goertek’s new project is set to enter operation in 2024. The Chinese manufacturer expects the proximity between the two industrial parks will help its business.
In October 2022, the International Finance Corporation (IFC) approved a $700 million financing package to Goertek for a new modern electronics production plant in Vietnam.
Goertek is among the major names in electronics manufacturing in Vietnam, which also include Samsung, LG, Intel, Amkor Technology, Panasonic, Canon, Foxconn, Pegatron, Luxshare, Wistron, Foster Electric, and ASE Technology.
Bac Ninh is among the biggest FDI hubs in Vietnam. As of April 20, the province had attracted 1,884 FDI projects with registered capital of $23.87 billion, the seventh-highest figure among all cities and provinces, according to the Ministry of Planning and Investment.
Vietnam's industrial production expanded by 0.5% year-on-year in April, but fell 1.8% in the first four months of this year amid weaker global demand, the General Statistics Office said. Bac Ninh’s performance in the four-month period was worse with a decrease of 18.47% versus growth of 17.67% in the same period in 2022. Its underperformance was driven by a drop of 18.59% in the manufacturing-processing sector.