Intel Corp., the world’s largest chipmaker, has announced it will invest US$300 million to build a semiconductor assembly and test facility in Ho Chi Minh City.
The facility, which will be built soon in the Saigon Hi-Tech Park, marks the single largest American investment so far in Viet Nam, and it is considered a significant project for the nation in its efforts to attract more foreign investors.
“We applaud the progress the country has made in building up their technology infrastructure and the support of education programs to advance the capabilities of the local workforce,” Intel Chairman Craig Barrett told the investment license award ceremony at the Re-unification Palace in Ho Chi Minh City on February 28, 2006.
“Intel looks forward to working with the Government and public sector in Viet Nam to grow their technology capabilities and competitiveness,” he said at the ceremony, where the Vietnamese Ministry of Investment and Planning handed over the investment license.
“We consider this to be one small step in a long journey of involvement with Viet Nam,” he said.
He added that construction on the factory, which will employ 1,200 people, will begin immediately. Production is set to start in the second half of 2007. He said he considers the facility to be only the first phase of Intel’s investment in Viet Nam, where Intel has been present since 1997.
Viet Nam’s Deputy Prime Minister Nguyen Tan Dung said he expected Intel’s move to put an international spotlight on the country as a good investment destination. Mr. Dung said the country, whose economy has been steadily growing at 7.5-8.0 percent a year, is seeking to integrate more into the global economy, making great efforts to lure foreign investors and improve the investment environment.
“Viet Nam is pinning a lot of hope on high-tech fields, including chip assembly and testing. The Government expects Intel to fulfill what Intel has pledged in the investment license,” said the Deputy PM.
Mr. Dung presented a gift to Mr. Barrett and so did the Intel Chairman.
Intel’s investment license was approved for US$605 million, and Barrett said he fully expects that if things go according to plan, Intel will expand operations to a second phase.
Mr. Barrett told the press briefing after the ceremony that the facility would employ many locals, send them overseas for training and bring them back to work. The new facility, which is Intel’s latest addition to the global network of assembly and test facilities, will supplement Intel’s existing activities in Southeast Asia and Asia.
“As part of Intel’s digital ASEAN program, we continue to work on the development of a stronger digital workforce, integrating technology into education and government.”
“We’ll help the Vietnamese Ministry of Education and Training train more teachers in computer use and they will give their lessons to the classrooms.”
Vote of Confidence in Viet Nam
Intel’s decision to build the first chip assembly and test plant in Viet Nam is seen as a huge vote of confidence in the country, giving a strong push to its economic modernization and credibility as an investment site.
Jeff Puchalski, vice chairman of the American Chamber of Commerce (AmCham) in Ho Chi Minh City, told Sai Gon Giai Phong, “Intel’s move shows that Viet Nam is a perfect destination for American companies and other companies.”
Walter Blocker, AmCham chairman in Ho Chi Minh City, said Intel’s investment decision is the 24-carat gold stamp of approval for Viet Nam as a world-class investment destination.
With Intel taking the lead, a whole field of technology also opens up for the country, with both hardware and software makers likely to take a closer look at the opportunities Viet Nam can offer.
“No better opportunities for IT companies can be found anywhere else in the whole of Southeast Asia,” AFP quoted Henry Nguyen, managing general partner of IDG Venture Vietnam, an investment fund.
Related links
Intel:http://www.intel.com
Saigon Hi-Tech Park:http://www.shtpvn.org
