Foreign giants eye business expansion amid COVID-19

14-Jul-2020 Intellasia | VOV | 6:02 AM Print This Post

A number of major foreign corporations, such as LG, Panasonic, and Foxconn, Apple’s largest supplier, have revealed plans to expand their respective business operations in Vietnam amid the novel coronavirus (COVID-19).

According to a report released by the Ministry of Industry and Trade (MoIT), several of the world’s largest technology corporations have initiated plans to shift their production chains to the nation. LG Electronics Inc. for example recently moved their entire production line from the Republic of Korea (RoK) to Hai Phong port city.

At a recent conference between the government and localities, the Hai Phong leadership proposed expanding Dinh Vu-Cat Hai economic zone and Trang Due Industrial Park to attract investment from LG. The RoK group had launched a $1.5 billion factory in Trang Due Industrial Park back in 2015 and it has been operating well there.

Along with LG, Panasonic Vietnam is also gearing up to receive a production line of refrigerators and large-capacity washing machines from Thailand in early September.

Moreover Apple, also moved to increase production of up to four million AirPods during the second quarter, equivalent to nearly one third of its total output worldwide, through Foxconn.

At present, Foxconn has three factories in Vietnam, including Funing Precision Component Co., Ltd in Bac Ninh province and Fuhong Precision Component Co., Ltd and FuGiang Co., Ltd located in Bac Giang province. Apple’s largest supplier previously submitted a proposal to construct three social housing projects in the northern region with investment totalling over VND7,400 billion. The social housing projects are planned to be located next to Foxconn’s industrial zones in Bac Ninh, Bac Giang, and Vinh Phuc.

Furthermore, the country’s measures to control the spread of the COVID-19 have been highly appreciated by the international community, serving as an important driving factor in attracting greater foreign investment after a widespread downturn caused by the impact of the pandemic.

The expansion of production chains and capital investment of multinational corporations has significantly contributed to the growth of the electronics industry in the first half of the year, despite the industry being badly affected by the COVID-19.

According to the MoIT, the production index of electronics, computers, and optical products during June 2020 enjoyed a rapid surge of 29.3 percent compared to last month and 21.7 percent from a year ago.

The first half of the year saw the export value of computers, electronic products, and components increase by 24 percent to nearly $19.3 billion, while the export value of mobile phones and accessories reached $21.5 billion.

Moving forward, Samsung’s global sales and output are forecast to decline due to the impact of the COVID-19 on electronics, with Samsung Vietnam planning to lower its export target to $45.5 billion in 2020.

https://english.vov.vn/economy/foreign-giants-eye-business-expansion-amid-covid19-415945.vov

 


Category: Business, Vietnam

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