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COVER STORY

Viable option

With many businesses considering moving their supply chains from other
countries, Vietnam is in a unique position to become the leading alternative.
T HONG NHUNG & TRA MY REPORT

for Intel, and remains the largest US high-
tech investment in Vietnam. “The total export
value of the IPV factory has reached $50
billion over the last decade, with more than 2
billion product units being exported as of
March last year,” Mr. Ooi revealed at a cele-
bratory ceremony and dialogue on key mile-
stones for the company, held recently in Ho
Chi Minh City. “For this year, we anticipate
exporting 2.6 billion products by late March.”
Meanwhile, Japanese appliance maker Pana-
sonic is moving its Thai-based production of
refrigerators and washing machines to Vietnam
S as part of its global restructuring plans. “Man-
ufacturing products in Vietnam and supplying

them to individual markets would be more

advantageous than continuing manufacturing
in Thailand in terms of costs, and we would

PHOTO: VIET TUAN Director of Panasonic Vietnam, told VET.
be able to deliver more competitive products
to customers,” Mr. Marukawa Yoichi, General
Panasonic has poured $248 million into
eight companies in Vietnam, five of which
are manufacturing companies, in Hanoi’s
S tech giant Intel officially announced Bac Giang province producing tablets and Dong Anh district, northern Hung Yen
in late January an additional investment computers. A host of other global manufac- province, Ho Chi Minh City, and southern
U of $475 million in Intel Products Viet- turers and tech giants have also been heading Binh Duong province. “Despite the difficulties
nam (IPV). The new injection of capital builds to or expanding their investment in Vietnam caused by the pandemic, Vietnam showed
on its $1-billion investment to build a state- over recent years. Notwithstanding the Covid- its toughness by quickly managing it in terms
of-the-art chip assembly and test manufacturing 19 devastation, Vietnam has emerged as an of manufacturing and domestic demand,”
facility at the Saigon Hi-Tech Park (SHTP), attractive choice for multinational corporations Mr. Yoichi said. “From a company perspective,
first announced in 2006. “IPV is an important seeking to diversify supply chains in Asia. the diligence of Panasonic’s staff contributed
part of Intel’s supply chain,” IPV Vice President greatly to helping us overcome the difficult
and General Manager Kim Huat Ooi said in Bold steps times. We were able to maintain our leading
explaining the reasons behind the additional IPV is the largest assembly and test man- position in the home appliance industry with
investment in facilities and human resources. ufacturing facility in Intel’s global chip assem- a market share of over 20 per cent, according
Another electronics manufacturer, Foxconn, bly and testing network. It has more than to German market researchers Gfk.”
an Apple vendor, is also set to outlay $270 2,700 employees, serves customers around Meanwhile, Hitachi Systems Vietnam (HSV),
million on building a new factory in northern the world, is one of ten manufacturing sites a subsidiary of the Japanese-Malaysian joint

VIETNAM CONTINUES TO BENEFIT FROM CONSISTENT FDI FLOWS... …. LEADING TO SURGING ELECTRONICS PRODUCTS EVEN AMID THE PANDEMIC
% of GDP % of total exports
Total new FDI
10 40
New mfg. FDI Phones and computer electronics
8
30
6
20
4
Textile and footwear
10
2
0 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2005 2010 2015 2020

Source: CEIC, HSBC

22 | VIETNAM ECONOMIC TIMES | APRIL 2021