Export turnover set for boost with foreign ventures
Export turnover set for boost with foreign ventures
A series of electronic component plants have been taken into operation, which will contribute to fostering the export turnover of these products.
Two suppliers of components are preparing final works to take their two plants in the central province of Nghe An into operation this month.
Goertek Precision Industry’s $100-million first phase, which is expected to start operation this month, covers an area of 40 hectares at WHA Industrial Zone 1 in Nghe An province, and will have an annual capacity of 381 million products.
Goertek Precision Industry Vietnam is a subsidiary of a China-based Global Manufacturer of Smart Hardware and High-precision Components. Goertek Precision’s project has an investment of $500 million and specialises in micro-electromechanical systems which combine electronic products, network equipment, and multimedia audio products.
Being one of three key suppliers for Apple in Vietnam, along with Foxconn and Luxshare, GoerTek has been operating in Vietnam since 2013 and has so far established two facilities in the northern province of Bac Ninh and Nghe An.
Meanwhile, after one year of construction, Everwin Precision Hong Kong will also take a $200 million electronic parts factory in Nghe An into operation this month. It is designed to make 270 million products per annum. The Hong Kong manufacturer - a supplier of components for Apple, Xiaomi, and Huawei - plans to export all of them.
The first Vietnam factory of US-based Amkor Technology, a global semiconductor product packaging and test services provider, last week was inaugurated in Bac Ninh.
A representative of Bac Ninh Department of Planning and Investment told VIR, “The department was assigned to cooperate with the management authority of industrial zones and the investors to build plans for the inauguration ceremony, which is expected to occur in mid-October.”
Once these factories go into operation, they will contribute to fostering the export turnover of the industry. For example, Amkor is currently a strategic manufacturing partner of many of the world’s top chip companies, and chip and electronic circuits foundries such as Qualcomm, Samsung, Foxconn, LG, and SK Hynix.
In addition, Vietnam is also an important production hub of Amkor Technology. Thus, the export turnover from plants in Vietnam will also contribute an important part to the group’s revenue. The Vietnamese plant’s size will be only behind Amkor’s South Korean factory. According to the plan, it will invest about $1.6 billion until 2035 on building a state-of-the-art facility in Bac Ninh.
Statistics published by the General Statistics Office show that in the first nine months of 2023, the two sectors of electronics and computers, and mobile phones with its components, rank at the top of products with an export turnover of more than $10 billion.
The electronics, computers, and components segment ranks first with a value of $41.18 billion and the runner-up is mobile phones and components with a total value of $39.32 billion. In September alone, the figures were $5.3 billion and $5.2 billion, respectively. The major export markets for this product group are the EU, the United States, and China.
According to the Vietnam Association for Supporting Industries (VASI), the nation ranks 12th in the world and third position in ASEAN in terms of electronic exports. However, foreign-invested manufacturers hold 90 per cent of the total export turnover of these products.
Thanks to this potential, many manufacturers keep a keen eye on Vietnam. For example, Goertek considers Vietnam as the group’s vital important production hub overseas, which shoulders 30 per cent of the total capacity and revenue of the group. In the strategy planned for the next five years, Goertek will increase the total investment in the Southeast Asian country to $1.5 billion.
GoerTek, which also plans to manufacture VR headsets in Vietnam from 2024, expects the Southeast Asian country to produce more than half of its global revenues in three years, up from one-third now.
