Innovation Precision Vietnam Co., Ltd., under China’s Shandong Innovation Group, was given an investment certificate for a $165 million electronics project in the central province of Nghe An on Tuesday.
The project, located in VSIP Nghe An Industrial Park, will manufacture aluminum alloys and aluminum alloy products for the production of electronic goods; forged, stamped, pressed, and rolled metal; and aluminum components for the electronics sector.
The 11.78-hectare project will have an annual output of 100,000 tons, and is expected to employ 1,500 skilled workers and enter operation in October 2024.
Speaking at the investment certificate handover ceremony, Nghe An Chairman Nguyen Duc Trung lauded the quick processing time of only one week for the project’s administrative produces. The project has the highest investment-to-area ratio of all FDI projects in Nghe An, he added.
As Shandong Innovation’s first overseas project, Nghe An province expects it to contribute to the province’s growing ecosystem and supply chain for the electronics and green industries, the provincial leader highlighted. In reply, a representative of the firm said the company is committed to bringing leading modern technology to Nghe An province.
With the latest project, Nghe An has attracted $890 million in FDI so far this year, according to the provincial authorities. Other major FDI projects initiated in the province this year are investments by Runergy PV Technology Co., Ltd. and Yongjin Metal Technology.
In July, Thailand-based Runergy PV Technology Co., Ltd. said it would invest $293 million in a factory producing monocrystalline silicon rods and semiconductor platters at the Dong Nam Economic Zone in Nghe An province. Runergy PV Technology Ltd is a subsidiary of China-headquartered Jiangsu Runergy New Energy Technology Co., Ltd. The plant, located in the Hoang Mai I Industrial Park, has a design capacity of 14,635 tons of silicon rods and 995 million 182-milimeter semiconductor platters a year.
In May, 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. 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.
Nghe An attracts investments in electronics
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. In May, the Dong Nam Economic Zone Authority in Nghe An granted an investment certificate to Foxconn Interconnect Technology Singapore Pte. Ltd. to deploy the project at WHA Industrial Zone 1.
In November 2022, Luxshare - ICT (Nghe An) Limited received approval to conduct the Luxshare-ICT (Nghe An) 2 project for manufacturing electronics parts at the VSIP Nghe An Industrial Park. The project has an investment of $150 million for the first phase and a designed capacity of 74 million products a year.
In January 2022, Goertek Inc. said it would add $400 million to its $100 million manufacturing facility, making it the largest foreign-invested project in Nghe An.
In December 2021, Nghe An granted an investment registration certificate to Taiwan-based Ju Teng International Holdings Limited for a $200 million electronics and automobile component factory.
In January 2021, Everwin Precision Hong Kong Co. Ltd. was approved to develop a $200 million electronic parts factory in Nghe An. It is designed to make 270 million products per annum, and the Hong Kong manufacturer - a supplier of components for Apple, Xiaomi, and Huawei - plans to export all of them.