Foxconn dials in cell plant

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Tran Van Quy, vice head of Vinh Phuc Industrial Zone Authority, said the firm was committed to build the project as requested by the provincial People’s Committee.

“Foxconn will have to implement its commitments with the local authority to build the factory here. Preparation for its construction is completed,” said Quy.

Foxconn representatives in Vietnam were not available for comment.

Foxconn, the world’s largest electronic outsourcer, received an investment certificate for building the $200 million cell-phone manufacturing factory in 2008, to  produce nearly 90 million units per year. The project is a part of its $5 billion investment plan in Vietnam, announced in 2007.

Foxconn also planned to build a Binh Xuyen 2 Industrial Zone in the province for attracting suppliers to support the operation of its factory.

However, the investment has been delayed as Foxconn was hit by global economic recession. The firm only completed construction design for the factory and site clearance.

Quy said Foxconn could get the axe if it did not start construction as committed.

“We don’t want to see further delays at the project,” he said.

Foxconn’s investment expansion in Vietnam will allow the firm to reduce production costs as it is facing labour cost pressure in China after workers’ suicides last summer.

In an annual shareholder meeting held in Taiwan last year, Foxconn chief executive officer Terry Gou announced the firm would set up new factory in Taiwan or Vietnam to relocate production from China, adding that the existing factories in Vietnam would receive more orders.

At present, Foxconn has four manufacturing factories in northern Bac Ninh and Bac Giang provinces. The cell-phone manufacturing factory in Vinh Phuc will be the fifth one of Foxconn in the country.

The Foxconn’s factory, once completed, will make Vinh Phuc as a good destination for electronic manufacturers.

Another Taiwanese firm, Compal, is in the final stage of construction at its $250 notebook manufacturing in the province to produce 500,000 units per month.

Compal, which had clients like Acer Inc, Dell, Toshiba, Hewlett-Packard, would start production early next month, said  Vinh Phuc Industrial Parks Management Authority source.

“We don’t want to see further delays at the project,” he said.

Foxconn’s investment expansion in Vietnam will allow the firm to reduce production costs as it is facing labour pressure in China.

In an annual shareholder meeting held in Taiwan last year, Foxconn chief executive officer Terry Gou announced the firm would set up new factory in Taiwan or Vietnam to relocate production from China, adding that the existing factories in Vietnam would receive more orders.

At present, Foxconn has four manufacturing factories in northern Bac Ninh and Bac Giang provinces.

The cell-phone factory in Vinh Phuc province will be the fifth  of Foxconn’s investment series in Vietnam.

The factory, once completed, is expected to make Vinh Phuc a good destination for electronic manufacturers.

Another Taiwanese firm, Compal, is in the final stage of construction of its $250 million notebook manufacturing factory in the province to produce 500,000 units per month.

Compal, which has big clients like Acer Inc, Dell, Toshiba and Hewlett-Packard, would start production early next month, said  a Vinh Phuc Industrial Zone Authority source.