Foxconn Steps Back From Projects

The world’s largest electronic outsourcing manufacturer is delaying its massive investment plans for Vietnam due to global economic recession.

Vu Duc Quyet, Director of Bac Ninh Industrial Zones Authority, said Taiwan’s Foxconn had done nothing to pursue its hi-tech industrial park and township project in Bac Ninh province, 30 kilometres north of Hanoi.

Two years ago, it expressed interest in developing a $1 billion hi-tech industrial park and township project covering 800 hectares.

Quyet said Bac Ninh provincial leaders had earmarked land along the Cau River for the project and had asked the investor to submit a feasible investment plan. "We have received nothing so far. No feasible investment plan nor a proposal. Actually, we don’t know whether it will continue or not,” said Quyet.

The project is part of Foxconn’s $5 billion investment plan in Vietnam, which was announced in early 2007. According to the announcement, Foxconn planned to build manufacturing factories, hi-tech industrial parks and township in seven provinces, including Bac Ninh, Bac Giang, Vinh Phuc, Hanoi, Haiphong and Ho Chi Minh City.

The company also signed an agreement with Binh Dinh People’s Committee to develop a large-scale hi-tech park, urban and tourist resort complex in 2007. The $1 billion project would cover 1,000ha.

At the time, Foxconn said it wanted to be the largest foreign investor in Vietnam and boost the development of Vietnam’s electronic manufacturing sector.

However, there have been only two Foxconn factories built in Vietnam, both in Bac Ninh’s Que Vo Industrial Park. Early last year, Foxconn also gained investment certificate for building a $200 million cell-phone manufacturing factory in Vinh Phuc province, which is under construction.

"They [Foxconn] still committed to developing projects in Vietnam, but the investments will not be undertaken as soon as scheduled before,” said Do Quoc Tuan, Deputy Director of Bac Giang’s Department of Planning and Investment.

Tuan said Foxconn had delayed the construction of Bac Giang 400ha Van Trung Industrial Park for months although it had cleared the site.

Source: VietNamNet Bridge