China’s Taiwan-based Hon Hai Precision Industry will build a parts factory for pure electric vehicle (EV) chargers and communication equipment in Quang Ninh province in northern Vietnam. The total investment is expected to be about $250 million. It will shift from a profit model that relies on smartphones to pure EVs, which are expected to grow.
Chau Nghia Van of Hon Hai Vietnam Corporation said “Quang Ninh province was chosen based on 16 years of investment experience in Vietnam,” at the investment license ceremony.
Hon Hai will build two factories in Song Khoai Industrial Park. One of them is a production base for chargers, etc., with an investment of US$200 million. It is expected to be completed in January 2025 and will have about 1,200 employees. The other is a base for communication parts and molds, with an investment of $46 million. It is expected to be completed in October 2024. The number of employees will reportedly exceed 700.
In northern Vietnam, investments by electronics manufacturing services (EMS) majors looking to reduce their dependence on China have been notable. PEGATRON United Technologies invested in Hai Phong, Vietnam, while Quanta Computer announced a new factory in Nam Dinh province.
Hon Hai also plans to build a new factory in the central province of Nghe An, according to Vietnamese media reports.
Hon Hai is moving away from its profitable model of relying on smartphone assembly and is getting into the pure electric car business. Kwan Run, who has accumulated rich experience in Nissan Motor and NIDEC (formerly Nidec), was hired to head the pure electric vehicle business.