HONG KONG Vietnam's nascent electronics industry scored another success earlier this month when Taiwanese laptop manufacturer Compal received the go-ahead to set up a $500 million factory in the country.
The official Vietnam News Agency said the planned computer, component and peripheral manufacturing facility was planned for the Ba Thien Industrial Park in Vinh Phuc province, near Hanoi, and would represent the single largest investment in the province's history.
Officials expect construction on the factory to begin by the end of the year. The plant should be up and running in 2009. When running at full capacity in 2012, the facility will employ around 35,000 people and produce some 24 million computers annually.
Compal's plant would mark the second major investment in Vietnam unveiled by a Taiwanese electronics company this year. In August, contract manufacturer Foxconn confirmed it would invest up to $5 billion in Vietnam over the next three to five years. The same month Intel Corp. representatives said a $1 billion fab under construction on the outskirts of Ho Chi Minh City would move into production by 2009.
Vietnam's Ministry of Trade recently predicted electronics exports would reach $3.6 billion in 2008, up from just under $2 billion in 2006.