MANHASSET, N.Y. Vietnam's Ministry of Investment and Planning has approved an investment license for based Intel Corp., which plans to build a $605 million plant in Ho Chi Minh City, a ministry official was quoted as saying in an Associated Press report.
"We have agreed to issue a license to Intel to build a semiconductor facility in Vietnam," the official reportedly said. "The factory will be the largest computer equipment manufacturing plant in Vietnam."
Intel reportedly applied for permission to build a plant in Vietnam early last month (see Jan. 5 story
) to produce both microchips and computer parts. At the time, it was unclear whether the plant would be a wafer fab or assembly plant.
According to the report, Intel Vietnam said the ministry will officially give the license to Intel on Feb. 28 at a ceremony in Ho Chi Minh City, to be attended by Intel chairman Craig R. Barrett.
Government officials in Hanoi were quoted as saying Intel's decision to invest in Vietnam would boost the country's information technology (IT) development program.
"Once Intel arrives in Vietnam, we expect more foreign investors to follow because they will need to work (with Intel) in producing computers and other accessories from here," said Nguyen Duc Hoang from the Ministry of Science, Technology and Environment.
Currently, about 260 U.S. firms, with a combined capital of $1.45 billion, have invested in Vietnam, according to government statistics quoted in the report.
An Intel spokesman declined to comment on the reports.
Related story: Infrastructure, suppliers play catch-up in Vietnam