Taiwan-based mechanics firm Lioho Machine Works has kicked off the construction of its $75 million factory in Vietnam’s northern province of Vinh Phuc.
The five-hectare plant in the Thang Long Vinh Phuc Industrial Park will manufacture components for automobiles, motorbikes, agricultural machines, Internet devices, and pumps. The products are set to be supplied to domestic automobile and motorbike producers and for export.
Speaking at the event, Vinh Phuc Chairman Le Duy Thanh affirmed the project meets the province’s development priorities in 2020-2025 and beyond.
Lioho Machine Works received an investment certificate for the project in June. It aims to put the plant into operation in January 2024 and employ 100 people, with an annual output of 750,000 items.
The project is the 46th Taiwanese investment in Vinh Phuc, raising the total investment from the territory to $1.1 billion, official data shows.
Vinh Phuc, home to motorbike factories of Honda and Piaggio, attracted 70 foreign direct investment projects with total registered capital of $583.32 million in the year to November 15.
The province’s index of industrial production (IIP) rose 3.4% year-on-year in November but fell 1.07% in January-November, due to the slow economic recovery in Vietnam and the world, the provincial statistics office said. The performance was below the country’s IIP growth of 1% in January-November.