HANOI, Vietnam (AP) — Taiwan's Hon Hai Technology Group plans to invest $5 billion in Vietnam, a government official said Thursday, joining other high-tech manufacturers that have shown growing interest in the country.
In an agreement signed in Hanoi on Wednesday, Hon Hai agreed to quintuple its planned investment in Vietnam, where it intends to build factories in six provinces across the country over the next five years, said Dang Van Hien of the Ministry of Planning and Investment.
Hon Hai is the world's No.1 contract electronics manufacturer by revenue. Its customers include Hewlett-Packard Co. and Apple Inc., and it produces computer components and other electronic products at plants in Asia, Latin America and Europe.
Last year, Intel Corp. said it would invest $1 billion in a semiconductor testing and assembly plant under construction in Ho Chi Minh City.
Vietnam has one of the world's fastest-growing economies because of its low labor costs and a large supply of young, well educated workers. Its appeal to investors has also grown since it joined the World Trade Organization in January.
Tuesday, Hon Hai inaugurated two factories in Que Vo Industrial Park in northern Bac Ninh province, where it will produce main boards and camera modules. It is also building two plants in neighboring Bac Giang province.
The company is investing $163 million in those four plants. It already has factories in Taiwan, China, Brazil, the Czech Republic and Ireland.
The Hon Hai group, which includes Foxconn International Holdings Ltd., makes iPods for Apple Computer Inc. and mobile phones for Nokia Corp.
This year, Vietnam has approved foreign investment projects worth more than $8 billion. Last year, foreign investment reached a record of $10.2 billion.