Foxconn aims to invest 250 million in Vietnam. It has set its sights on Vietnam for its expansion plans in the electric vehicle (EV) sector. The electronics giant aims to invest in two new projects in Vietnam. The purpose is to showcase its determination to diversify and become a significant player in the rapidly growing EV industry. Foxconn is a renowned Taiwanese contract electronics assembler and a key player in the industry.
The move by Foxconn signifies a strategic shift from its traditional business model. The company generally focuses on assembling electronic products for prominent brands like Apple. By venturing into the EV market, Foxconn aims to capitalize on the global shift towards sustainable transportation and leverage its extensive manufacturing expertise.
Investment via Foxconn Singapore
The company plans to establish an industrial park in northern Vietnam through its subsidiary, Foxconn Singapore. It will serve as a hub for the production of EV components, controllers, and other related products to meet the anticipated surge in demand. In a statement to Reuters, Foxconn stated that the investment will cater to future development needs in the EV sector.
This latest investment adds to Foxconn’s substantial commitment in Vietnam over the past decade. Thereafter, the new projects will propel the company’s total investment in the Southeast Asian country to an impressive $3 billion. This reaffirms Foxconn’s broader strategy of expanding its operations beyond China. This move is particularly important especially in light of the ongoing trade tensions between China and the United States.
Local authorities have granted approval for Foxconn’s investment plans, solidifying the company’s commitment to its expansion in Vietnam. Foxconn will allocated approximately 200 million to the building of a state-of-the-art factory focused on the production of EV chargers and components. The company plans to commence operations at the facility on January 2025. Foxconn also plans to employ around 1,200 skilled workers. Subsequently, Foxconn will invest the remaining $46 million in a separate plant. This plant will be dedicated to the manufacturing of electronics and telecommunication components. Production is set to begin in October 2024.
Both facilities will be located in the Song Khoai Industrial Park. The park is strategically situated approximately 138 kilometers (86 miles) east of Hanoi, Vietnam’s capital city. Foxconn has expressed its deep-rooted presence in Vietnam. It has emphasized the country’s significance as one of the key locations within its extensive global manufacturing network.
Wide ranging benefits of Vietnam
Foxconn’s substantial investment in Vietnam’s EV industry will generate wide-ranging benefits. It will contribute to job creation, technology transfer, and the overall growth of the country’s manufacturing sector. Furthermore, it aligns with Vietnam’s broader goals of attracting foreign investment, fostering sustainable development, and positioning itself as a competitive player in the global EV market.
In addition to the aforementioned projects, Foxconn has also announced plans to establish a new factory in Vietnam’s central province of Nghe An. With an initial investment of $100 million, this facility will further strengthen its presence in the country and solidify its position as a key contributor to Vietnam’s economic growth.
Overall, Foxconn’s substantial investments in Vietnam’s EV sector demonstrate the company’s forward-thinking approach and strategic vision. By capitalizing on the growing demand for electric vehicles, Foxconn aims to cement its position as a leading global player in the EV supply chain while supporting Vietnam’s aspirations for sustainable development and economic progress.