Tue, Jan 09, 2007 - Page 12 News List

Hon Hai to invest in Vietnam plants

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Hon Hai Precision Industry Co (鴻海精密), the world's largest contract electronics manufacturer, said it may invest US$1 billion to build facilities in Vietnam to help the company meet growth targets.

The Taipei-based company expects the Vietnam plants to start production within a year, Edmund Ding (丁祁安), a Hon Hai spokesman, said yesterday in a telephone interview.

"We just sent a working group there and in general the incentives are very good," Ding said. "The final decision will be made in the next couple of weeks."

Hon Hai supplies music players to Apple Computer Inc and games consoles to Sony Corp and Nintendo Co. Hon Hai chairman Terry Gou (郭台銘) said in June last year that the company intended to increase revenue by an average 30 percent a year for five years.

Gou visited Vietnam and was satisfied with property prices and taxation in the country, the Taipei-based Commercial Times reported yesterday, without citing its source.

The new factories will be in northern Vietnam, Ding said.

The company has yet to decide on the size of the facility or what will be manufactured there, he said.

Hon Hai saw sales for the first 11 months of last year rise 30.76 percent to NT$773 billion (US$23.66 billion).

Shares fell 1.3 percent to NT$232 on the Taiwan Stock Exchange, in line with the 1.3 percent decline in the benchmark TAIEX index.

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