Japan-invested Murata Manufacturing Vietnam Co., Ltd. on Wednesday inaugurated its JPY4.32 billion ($29.6 million) factory to make inductor coils for cars and electronic devices in Vietnam’s Danang city.
The manufacturing subsidiary under Japan’s Murata Manufacturing Co., Ltd. made the announcement on the same day. The factory in Hoa Khanh Industrial Park in the central coastal city has a total floor area of 22,637 square meters.
Murata, a worldwide leader in the design, manufacture and sale of ceramic-based passive electronic components & solutions, communication modules and power supply modules, established its Vietnamese subsidiary in November 2003 and employed 3,394 people in the country as of June 2023. The construction of the newly-inaugurated facility started in June 2022.
Regarding its global operations, Murata made a revenue of JPY367.7 billion ($2.51 billion) in April 1-June 30 this year (first quarter of fiscal year 2023), down 15.8% year-on-year. The underperformance was due to lower sales of modules for computers, base stations, and smartphones, the firm said in its quarterly review. The firm recorded an operating profit of JPY50.1 billion ($343.48 million), down 44.8%.
Danang has attracted 75 foreign direct investment (FDI) projects so far this year, according to municipal data. They include $11.41 million in newly-registered capital, $14.29 million of additional capital, and $2.78 million in capital contributions for stake acquisitions. As of August 15, the city had lured 1,013 FDI projects with a total investment of $4.1 billion.
Danang’s index of industrial production fell 1.3% year-on-year in August and 2% in January-August, provincial data showed. The underperformance in the eight-month period was attributed to a 3.6% decrease in the manufacturing-processing sector, a 0.9% rise in electricity production and distribution, and 49.1% growth in mining.