Vietnam Lures High-Tech Investment with Intel Plant Decision

Strategic Insights -

Vietnam's decision by Intel to locate a $605 million semiconductor assembly and test facility in the country is set to spark more high-tech investment, according to Pham Chanh Truc, head of the Sai Gon High-Tech Park's management board. This significant move has generated further interest from top-ranking Japanese firms, with the NIDEC Group, a major Japanese company, deciding to increase its investment from $500 million to $1 billion in the Sai Gon High-Tech Park over the next five years. The Intel plant and NIDEC's investment are expected to create significant economic growth, with NIDEC's five companies projected to reach a total gross turnover of $1 billion by 2008 and $2 billion by 2010, employing 20,000 people.

Key Takeaways:

  • Intel's $605 million semiconductor assembly and test facility in Vietnam is one of only seven facilities in Intel's global network.
  • The investment has generated interest from several top-ranking Japanese firms, with the NIDEC Group planning to increase its investment from $500 million to $1 billion in the Sai Gon High-Tech Park over the next five years.
  • NIDEC's five companies in the Sai Gon High-Tech Park are expected to reach a total gross turnover of $1 billion by 2008 and $2 billion by 2010.
  • The Intel plant and NIDEC's investment are expected to create significant economic growth, with NIDEC employing 20,000 people by 2010.
  • Pham Chanh Truc notes that Intel's decision is evidence that Vietnam's investment environment has improved, and the government is determined to restructure the economy by focusing on high-tech industries.
  • Vietnam's dynamic, diligent, and literate workforce is a key attraction for high-tech investors, with Intel recruiting highly skilled employees from the overseas Vietnamese community and other foreign companies.
  • High-tech investors like Intel and NIDEC are attracted to Vietnam due to its strategic location and favorable business environment.

Statistics:

  • $605 million: The value of Intel's semiconductor assembly and test facility in Vietnam.
  • 5 years: The timeframe for NIDEC's $1 billion investment in the Sai Gon High-Tech Park.
  • $500 million: The initial investment by NIDEC in the Sai Gon High-Tech Park.
  • $1 billion: The total gross turnover expected by NIDEC's five companies in the Sai Gon High-Tech Park by 2008.
  • $2 billion: The total gross turnover expected by NIDEC's five companies in the Sai Gon High-Tech Park by 2010.
  • 20,000: The number of people expected to be employed by NIDEC's five companies in the Sai Gon High-Tech Park by 2010.

Sources:

  • (VNA) 06-03 1423