Nidec invests in Ben Tre Province

October 17, 2012 | 08:42

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Japan-based Nidec Corporation started work on a new plant in Giao Long Industrial Park in Ben Tre province yesterday after carrying out several projects in Ho Chi Minh City, according to the Ben Tre Industrial Parks Management Authority.

Under the investment licence, Nidec Tosok Precision Vietnam, a member of Nidec Corporation, will develop a plant producing components for auto gearboxes in over four hectares in the industrial park.

The plant worth some $39.6 million is scheduled for operation next September, and all products will be exported.

This is the first investment of Nidec outside Ho Chi Minh City. Nidec has previously invested in production plants in Saigon Hi-Tech Park (SHTP) and Tan Thuan Export Processing Zone in the second city.

Specifically, in SHTP, Nidec has had five investment projects with total pledged capital of $246.5 million, with four already operational and the last one, Nidec Seimitsu Vietnam, scheduled for operation late this year.

The total export revenues of the four operational projects as of May were over $740 million, and over $9.5 million have been paid to the city’s coffer, according to SHTP.

The expansion of Nidec’s investment to other localities, according to experts, is inevitable as the land rental in the second city is now too high and the labor recruitment competition between businesses in the city is tough.

Ben Tre province licenced eight fresh FDI projects in the January-September period with total registered capital of $79.4 million, doubling that of the year-ago period. Besides, there were three projects having investment capital increased with total additional capital of nearly $10 million.

During the nine-month period, the number of valid FDI projects in Ben Tre was 41 worth a combined $309 million.

SGT

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