Coherent Corporation eyes Dong Nai for high-tech investment ventures

The US-based Coherent Corporation has made notable strides towards an investment in Dong Nai, a burgeoning hub in Vietnam for technology and industry.

According to its website, Coherent is a global leader in materials, networking, and lasers for the industrial, communications, electronics, and instrumentation markets. The company is headquartered in Saxonburg, Pennsylvania, and was founded in 1971 to manufacture high-quality materials and optics for industrial lasers. Today, the company operates in more than 20 countries around the world.

Steve Rummel, senior vice president of Coherent, outlined the company's expertise in manufacturing and supplying materials, components, electronic semifinished systems, and measurement equipment to many leading global brands.

"Our intention to bring high-tech projects in advanced optics, measurement, and semiconductor component manufacturing to Dong Nai is a testament to our commitment to innovation and growth in strategic global locations," Rummel said at a meeting on October 31 with Nguyen Hong Linh, Secretary of Dong Nai Party Committee, and other representatives.

Having explored the investment environment in Dong Nai, Coherent Group has expressed its desire to invest in three high-tech projects within the region.

In response to Coherent's proposed investment, Linh conveyed a sense of hopeful expectation.

"We eagerly await the alignment and cooperation between Coherent and our provincial departments to expedite the proposed high-tech investments," he stated.

He also emphasised the province's readiness to advance the initiative, "Our aim is to support these high-tech projects by focusing on cultivating a highly skilled workforce and ensuring the availability of key utilities and services such as electricity, water, and IT – all fundamental elements that foster an attractive investment climate."

The greatest challenge currently facing Dong Nai is the scarcity of substantial land parcels for lease.

Despite government approval for the establishment of eight new industrial zones (IZs) covering over 8,200 hectares, since 2020, these planned areas have faced obstacles related to investment procedures, the conversion of rubber and forest land, land auctions, tendering, and subdivision planning.

Numerous international conglomerates have shown interest in Dong Nai, but the lack of industrial land has diverted investors to other regions. Consequently, the province has missed out on attracting projects with investment capital running to billions of dollars.

To address this and draw high-tech, foreign-invested projects, Dong Nai recently decided to establish a task force to accelerate the development of new IZs and entice foreign enterprises to invest. This move is seen as a crucial step in bolstering the province's industrial infrastructure and in reinforcing Vietnam’s position as an attractive destination for high-tech investments.

Dong Nai licenses two foreign-invested projects, worth $30 million The committee's vice chairwoman Nguyen Thi Hoang praised the two large-scale projects, saying that they would play an important role in speeding up local economic development.

Dong Nai granted three investment registration certificates worth $210 million Dong Nai People's Committee on October 5 awarded investment registration certificates to three foreign-iinvested projects: Kingfa Science & Technology Co., Ltd. Project (China), Factory Project of Wave Crest Vietnam Co., Ltd. and SMC Manufacturing Vietnam Co., Ltd. (Japan).