As the US's Intel Group prepares to commence its US$1 billion semiconductor project in Ho Chi Minh City, investment in high technology continues to increase in Viet Nam, prompting forecast that the area will see one of the biggest and fastest FDI capital flows this year.

"Foreign investors carry out large-sized projects in Viet Nam to turn out products not only for the Vietnamese market but for the whole region, " Nguyen Van Dao, General Director of Samsung Vina said.

Japan's Meiko Electronics Co. Ltd., for instance, will build a plant producing Printed Circuit Boards (PCBs) and assembling finished electronic products at the Thach Xa Industrial Cluster in the northern province of Ha Tay.

The plant, with an investment of US$300 million, is the biggest ever electronics project in the country. When completed, it is expected to generate nearly 7,000 jobs.

Vneconomy, the on-line version of the Vietnam Economic Times, quoted the Saigon Invest Group as saying that the Honhai Precision Industry Ltd. of Taiwan has recently conducted research into Viet Nam's investment environment. In the first phase of its investment, Honhai plans to build electronics and hi-tech plants, with a total value of US$1 billion, in four northern provinces, namely Vinh Phuc, Bac Ninh, Bac Giang and Hai Duong. In the second phase, it plans to pour an additional US$3 billion into building hi-tech zones and residential and recreational areas.

After the Intel Group increased its stake in Viet Nam from US$300 million to US$1 billion, various US companies consulted the company about investment in Viet Nam, according to Intel Viet Nam's General Director Than Trong Phuc.

Intel's project will draw various foreign companies to Viet Nam as accessories suppliers, the general director said, adding that this will help increase the number of projects in the field of high technology in the country.

Intel will begin its project in chip manufacturing at the Hi-tech Park in Ho Chi Minh City in March.

Dr. Tran Quang Hung, General Secretary of the Viet Nam Electronic Entrepreneurs' Association, said the FDI flow into hi-tech areas also benefits local industry as more and more Vietnamese workers will be trained by foreign companies. Local small and medium-sized enterprises can also win more business in supplying parts and accessories to foreign companies

Source: VNAgency