Premier encourages S.Korean semiconductor firm to maintain long-term operation in Vietnam
Sunday, December 24, 2023, 13:15 GMT+7
Prime Minister Pham Minh Chinh has suggested South Korea’s Hana Micron Vina Company, which owns a semiconductor manufacturing factory carrying a price tag of nearly US$600 million in Vietnam, keep considering the Southeast Asian nation its long-running investment base.
The Vietnamese government leader on Saturday afternoon paid a visit to the South Korean firm’s semiconductor production factory at Van Trung Industrial Park in Viet Yen District under Bac Giang Province, northern Vietnam.
He called on the firm to closely cooperate with its partners to expand its operation in the country.
PM Chinh also expected the South Korean tech enterprise to ramp up its localization rate, accelerate technology transfer, and employ more Vietnamese workers.
Expressing high regard for the company's presence in Vietnam, PM Chinh emphasized that the firm has played a crucial role in the country's semiconductor manufacturing expansion, making a significant contribution to its growth.
The prime minister affirmed that Vietnam is stepping up efforts to attract foreign investors and build a strong ecosystem, including design, chip production and packaging aspects, to spur the semiconductor sector.
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| The entrance of Van Trung Industrial Park in Bac Giang Province, northern Vietnam. Photo: Ha Quan / Tuoi Tre |
PM Chinh also underlined that the Vietnamese government always garners recommendations and suggestions from investors to adjust policies and remove obstacles facing them, while creating favorable conditions for foreign investors to do business in Vietnam.
Hana Micron Vina Company is operating two factories in Bac Giang and Bac Ninh Provinces.
The Bac Giang-based facility, worth almost $600 million, is the largest semiconductor production base in northern Vietnam. Its revenue in 2023 is expected to reach $300 million.
The factory is set to increase its total capital to over $1 billion, generate $800 million in revenue, and create jobs for more than 4,000 employees in 2025.
This year, Bac Giang Province has 345 operational projects, with South Korean investors taking the lead in the number of projects and ranking second in registered capital.
South Korean firms account for some 25 percent of Bac Giang’s total industrial production value among foreign-invested companies, while representing 30 percent of the province’s export-import value, and contributing 21.3 percent to the state budget.
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