Intel Announces $300M Plant in Vietnam
Posted on: Tuesday, 28 February 2006, 00:00 CST
By TINI TRAN
HO CHI MINH CITY, Vietnam - Intel Corp., the world's largest chipmaker, announced plans Tuesday to build a $300 million chip assembly and testing factory in southern Vietnam, giving a huge boost to the country's efforts to raise its high tech profile.
The facility, which will be built in Ho Chi Minh City's Saigon Hi-Tech Park, marks the single largest U.S. investment so far in its former wartime adversary. The deal is considered a significant one for Vietnam in its campaign to attract more foreign investors.
"We consider this to be one small step in a long journey of involvement with Vietnam," said Intel Chairman Craig Barrett at a formal ceremony where Vietnam's Ministry of Investment and Planning handed over the investment license.
Construction on the plant, which will employ 1,200 people, will begin immediately, he said, adding that production is slated to start in the second half of 2007. Barrett said he considers the facility to be only the first phase of Intel's investment in Vietnam.
Vietnamese leaders are hopeful that Intel's move will put an international spotlight on the country's attractions as an investment destination. Vietnam last year had an annual growth rate of 8.4 percent, one of the highest in the region.
Intel's investment license was approved for $605 million, and Barrett said he fully expects that if things go well, Intel will expand operations to a second phase.
"If we continue as we anticipate, we have the option to go up to $605 million," he said.
Currently, about 260 U.S. firms, with a combined capital of $1.45 billion, have invested directly in Vietnam, according to government statistics.
In 2005, computer and electronic equipment exports from Vietnam rose 34 percent to $1.44 billion, while imports of computers and electronics rose 26.3 percent to $1.7 billion.
Source: Associated Press/AP Online
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