Foxconn poured 270 million USD to expand production in Vietnam

According to information from Nikkei, Foxconn – known as Hon Hai precision Industry is planning to expand production in Vietnam with an investment worth about 270 million USD.

Foxconn just started producing liquid crystal displays in Vietnam last week, aiming to take advantage of the newly signed Regional Comprehensive Economic Partnership (RCEP), hoping to help improve their production capacity here.

The 15-member RCEP Agreement was signed on November 15 with a commitment to eliminate 90% of import tariffs among signatory member countries in the next 20 years, and establish a general rule for trade. electronics, commodity exchanges, and intellectual property between member countries.

Foxconn will soon establish a new company in Vietnam. Details have yet to be revealed, but the company will manufacture desktop-related parts such as monitors.

Although China also participates in the RCEP Agreement, the deteriorating relationship between Beijing and Washington has forced many companies, including Foxconn, to find other locations for production bases.

Vietnam is a member of RCEP, and is located near China, making it a convenient place to manufacture components with cheap labor costs.

Young Liu – President of Foxconn once said: “The fever of investing in Vietnam from big enterprises is very significant”.

On Wednesday, Mr. Young Liu said that Foxconn currently produces a wide range of products in Vietnam including TVs, telecommunications equipment and computer-related products.

Foxconn is working to make changes to reduce its dependence on manufacturing in China. Their goal is to increase the proportion of products made outside of China to 30% of total products.

Foxconn’s rival companies such as Pegatron and Wistron have also decided to expand production to Vietnam.

Notably among them must be Luxshare – Foxconn’s new rival. This company in the middle of this year has recruited thousands of positions from workers to engineers, working at Van Trung factory (Yen Viet district, Bac Giang province) and the factory is about to go into operation in Nghe An. Luxshare ICT deploys the project in Bac Giang with an area of ​​14ha and an investment of 100 million USD. In which, Nghe An branch is invested 70 million USD.