Pegatron invests $ 1 billion in Vietnam

No longer a speculation, Pegatron Group (Taiwan), a supplier of components for Apple, Sony, Microsoft, and Lenovo ... has started to realize investment plans in Vietnam.

Foxconn is one of the three largest iPhone manufacturers in China and India that have invested in Vietnam. In the photo: Made at Foxconn's factory in Hai Phong.
Foxconn is one of the three largest iPhone manufacturers in China and India that have invested in Vietnam. In the photo: Made at Foxconn's factory in Hai Phong.
Pegatron's Great Plan

Information about Pegatron's investment plan to 1 billion USD in Vietnam has been officially confirmed. And the location chosen by this Taiwanese investor is Hai Phong.

Even though it was no longer a plan, Pegatron received the certificate of investment registration for its first capital in Hai Phong in March 2020. However, this first project only has a total investment of about 19 million USD. Currently, Pegatron is starting to invest in the second project, with a total investment of about 481 million USD.

The project is expected to be built in Nam Dinh Vu Industrial Park (in Dinh Vu - Cat Hai Economic Zone) to manufacture electronic equipment (civil electronics, computers and peripheral equipment of computers, equipment. communications, electronic components, circuit boards).

When in operation, the project is expected to create jobs for 22,500 workers directly and contribute to the budget revenue of about 100 billion VND / year. Project products will be supplied to Microsoft, Sony, Lenovo, and Apple.

According to the plan, after the second project, Pegatron continues to invest in a third project, with a scale of 500 million USD, in the period of 2025 - 2026. More remarkable, Pegatron also intends to bring research and development center. The Group's development (R&D) from China to Vietnam at an appropriate time, expected to be at the same time as Pegatron 3.

Thus, not merely investing in a factory, Pegatron also plans to invest in R&D, an area in which Vietnam has long wanted to attract investment, but not many real investors. investment in a large scale, apart from Samsung.

And it is no longer a speculation, another global technology giant has followed the wave of investment that is shifting to find Vietnam. Pegatron has in fact started to plan to shift investment away from China at the end of 2019, to "avoid" the US-China trade war, as well as to avoid the risk of losing billions of dollars in revenue in the patent lawsuit. with Qualcomm. Since then, a lot of information related to Pegatron's investment in new factories in Indonesia, in India, with a scale of up to billions of dollars.

However, in these plans, always tied to Apple iPhone products. Pegatron, along with Foxconn and Winstron, are the three biggest iPhone manufacturers in China and India. While in Vietnam, according to the submitted plan, it is likely that this "big" Taiwanese will only produce electronic components, just as Foxconn and Luxshare are doing.

The destination of technology giants

More than 10 years ago, after Intel Corporation's decision to invest USD 1 billion in Vietnam, a series of world technology giants came to Vietnam. LG, Kyocera, Nidec… especially Samsung, are the investors on this list, making Vietnam a destination for technology giants.

And now, after the US-China trade war, especially after Covid-19, disrupting the global supply chain, a shifting investment wave is pouring into Vietnam. In that wave, the appearance of technology giants has caused great attention of public opinion.

A lot of information said that Microsoft, Google will produce their products in Vietnam. There are even "made in Vietnam" iPhone dreams, especially when both Foxconn and Luxshare have continuously increased their investment capital, the number has reached billions of dollars. Even Intel recently mentioned its plans to expand its investment in Vietnam.

In addition, in addition to Pegatron, Vietnamese authorities are also "mobilizing" Universal Global Technology Co. Ltd. (Taiwan), a member of ASE Holding Technology Group to invest in production and installation projects. assemble electronic circuit boards for watches, phones, and headphones to supply to Lenovo, Sony. If you decide to invest, Universal Global will spend $ 200 million for phase I, then raise $ 400 million.

There are more such corporations, Vietnam will have a premise to continue to attract high-tech investors, manufacture and supply components and accessories for leading brands in the world, contributing to forming a cluster of electronic components in Hai Phong, from which it spread to other localities, just like Samsung has done with Thai Nguyen, Bac Ninh and Ho Chi Minh City.

More importantly, the increasingly coming of technology giants will contribute to help Vietnam participate more deeply in the global supply chain in electronics and high technology. This is also one of the important orientations and goals that Vietnam sets when building a strategy to attract foreign investment in the coming period, according to the spirit of Resolution 50 / NQ-TW of the Politburo.

Because of this, in a recent document sent to the Prime Minister