HCM City (VNS/VNA) - Multinational electronic companies are makingmoves to increase investment and expand production, to help Ho Chi Minh Citybecome a leading production hub.

Vo VanHoan, Vice Chairman of the HCM City People's Committee, said the city is nowhome to 50 foreign direct investment (FDI) projects with an investment capitalof more than 5 billion USD and an area of land of more than 326 ha.

Seventeen areelectronic projects with an investment capital of 20 million USD locatedin industrial parks, export processing zones and high-tech zones.

The city haslured many global leading brands including Intel, Samsung, First Solar,Furukawa Automotive Parts, and Renesas.

Early thisyear, both Intel and Samsung simultaneously increased theirinvestment and committed to long-term investment in Vietnam, despitecurrent restrictions caused by the COVID-19 pandemic.

Intel ProductsVietnam Company had increased its investment capital by 475 million USD,bringing its total investment capital to more than 1.5 billion USD. 

Alan Danner,CFO of Intel Vietnam, said Intel Vietnam has manufactured and exported morethan 2 billion microprocessor and semiconductor products. By the end of lastyear, total export value reached 50 billion USD and created nearly7,000 jobs.

This hashelped Intel increase its production of 5G products, Intel Core processors withIntel Hybrid technology, and 10th generation Intel Core processors.

SamsungElectronics HCMC CE Complex Co Ltd has agreed to adjust projectinformation and transform their business from a high-tech enterprise to anexport processing enterprise.

Samsung'sproject in HCM City Hi-Tech Park was first licensed on September 25, 2014. Theinvestment capital has now reached over 2 billion USD. The project was built onan area of more than 93 ha with a production capacity of 19 millionproducts per year; bringing an annual average turnover of 4.2 billionUSD.  Of this figure, import value was more than 2.5 billion USD andexport value 3.6 billion USD. This contributed more than 2.7 trillion VND(118 million USD) to the State coffers.

Experts saidthe transformation not only generates incentives for export, but also providepractical support to businesses in the supply chain of Samsung, especiallybusinesses in the field of supporting industry in HCM City and neighbouringareas.

Hua Quoc Hung,head of the management board of industrial and export processing zones of HCMCity, said there are 45 FDI projects in the electronics sector operatingin industrial zones and export processing zones with an investment capitalof more than 1.7 billion USD.

He said the USFirst Solar project located in the Southeast Industrial Park has an investmentcapital of more than 1 billion USD.

Chan SeeChong, General Director of First Solar Vietnam Manufacturing Co Ltd, told Vietnam Investment Review that his companyhad invested in building two factories in Dong Nam Industrial Park. First SolarGroup currently has three main production facilities in the US, Malaysia and Vietnam.

First Solarhas announced that the total investment capital for these two new factories was830 million USD. The first plant began manufacturing Series 6 solar modules atthe end of 2018.

When bothfactories are in full operation, First Solar's total capacity will reach2.4 GW per year, he said.

The companyalso doubled its production capacity to about 5.31 million modules peryear, compared with the initial expected capacity of 2.6 million modules peryear. Products are expected to be exported mainly to America and Europe.

Arepresentative of First Solar said they will have more opportunities to discusswith local authorities and real estate investors to focus on developing solarpower projects so as to meet Vietnam’s market demand./.