Foreign-invested groups to assist localities in attaining export turnover growth

February 29, 2024 | 15:57
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Many localities expect soaring growth in export turnover of electronics and electric products in 2024 thanks to the contribution of new facilities expected to come into operation soon.
Foreign-invested groups to assist localities in attaining export turnover growth
Foreign-invested groups to assist localities in attaining export turnover growth, illustration photo/ Source:

The central province of Nghe An has set a target to acquire nearly $700 million in export turnover from electronic products, spare parts, and components for the whole year, equalling one-quarter of the export value of the province this year. The total number of electronic products and parts is expected to touch nearly 600 million.

Nghe An is currently the only locality in the country that has gathered the five big electronics names of Foxconn, Luxshare, Goertek, Everwin, and JuTeng.

This year, many facilities invested by these manufacturers will be taken into operation, such as Everwin Precision Technology Vietnam’s $115 million plant, phase 1. It is designed to make 270 million products per annum. The Hong Kong manufacturer - a supplier of components for Apple, Xiaomi, and Huawei - plans to export all products to the United States and China.

Meanwhile, Goertek Precision Industry’s $100-million first phase, also expected to start operation this year, covers 40 hectares at WHA Industrial Zone 1 in Nghe An province and will have an annual capacity of over 380 million products. Almost all products will be exported to China, the US, or South Korea for partners such as Samsung, Amazon, Google, Sony, Microsoft, and Meta.

Last year, Nghe An’s total export turnover exceeded the $3 billion mark for the first time, reaching $3.11 billion; of which goods exports reached about $2.5 billion.

Ho Phi Trieu, deputy director of Nghe An Department of Planning and Investment, said, “The breakthrough growth in attracting foreign capital in recent years is the basis for the province to expect a high target in export turnover of the electronics sector. It is a feasible target because almost all investors are eager to implement their projects. At the same time, we are aiming to draw in new projects in the high-tech sector.”

Other localities known as production hubs for big electronic manufacturers expect more contribution from FIEs in promoting export turnover this year.

In the northern province of Bac Ninh, Amkor Technology is currently a strategic manufacturing partner of many of the world’s top chip companies such as Qualcomm, Samsung, Foxconn, LG, and SK Hynix. In addition, Vietnam is also an important production hub of Amkor.

Thus, the export turnover from plants in Vietnam will also contribute an important part to the group’s revenue. The Vietnamese plant’s size will be only behind Amkor’s South Korean factory. According to the plan, it will invest about $1.6 billion before 2035 on building a state-of-the-art facility in Bac Ninh.

However, the general economic figures of localities can take a bump when such massive groups are involved deeply. In 2023, Samsung Vietnam was forecast to have gained approximately $57 billion in export turnover, lower than the figures of the previous two years. As a result, the regional GDP growth of Bac Ninh province fell by 6.18 per cent compared to last year.

Elsewhere, Dong Anh Quan, director of Bac Giang Investment and Promotion Centre, told VIR, “FIEs contribute a pivotal part in the export turnover of the province. In Bac Giang, the contribution comes from key manufacturers such as Foxconn, Luxshare, and its members. We especially expect a strong contribution from Hana Micron Vina, which started operations in September last year. Our mission is to support them to help accelerate disbursement.”

Statistics published by the General Statistics Office show that in 2023, FIEs played a crucial role in Vietnamese economic growth, which is demonstrated through their contribution to export revenue, job creation, and the formation of supply chains in key export industries, especially in electronics and machinery. In particular, such groups account for 99.6 per cent of phones, over 98 per cent of computers, 93 per cent of machinery.

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By Nguyen Kim

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