HANOI: American chip maker Intel has opened a US$1 billion assembly and test facility in Vietnam, the company’s largest at 45,000 square metres.
Vietnam is keen to move up the technological ladder to embrace more sophisticated manufacturing, and is also looking to shed its image of simply being the world’s second-largest exporter of rice and coffee.
Intel’s entry marks the first major foreign high-technology investor in Vietnam and has been taken as a sign that other IT firms will follow suit. The plant is expected to hire approximately 4,000 staff upon reaching full production capability.
With the plant opening, Intel aims “to develop a stronger digital workforce, integrate technology into education and government, and make technology more accessible for business and consumers within Southeast Asia."
Some of the benefits of specialised manufacturing include its labour-cost effectiveness over China, proximity to the Chinese market and Vietnam’s participation in free trade pacts.
Source: AFP
