Foxconn buys land for a new plant in central Vietnam

The information disclosure of Hon Hai Technology Group (Foxconn) on the Taiwan Stock Exchange on May 8 shows that its subsidiary Fu Wing Interconnect Technology (Nghe An) Company Limited has obtained the right-of-use assets of 480,000 square metres at Lot B3 of WHA Industrial Zone1-Nghe An, phase 2.

This transaction is worth VND510 billion (about $21.7 million), equivalent to $45.25 per square metre.

Fu Wing Interconnect Technology's business registration certificate was granted on April 18. Its head office is located at Lot B3-A, B3-B, B3-C, and B3-D of WHA Industrial Zone1-Nghe An in Nghi Hung commune, Nghi Loc district, Nghe An province.

Lao Dong newspaper cited the Management Board of the Southeast Economic Zone of Nghe An as saying that the Provincial People's Committee of Nghe An province has granted an investment registration certificate to Foxconn. The project's first phase has an investment capital of $100 million.

WHA Industrial Zone1 Nghe An is the first industrial park that the Thai industrial developer built in Vietnam.

WHA Industrial Zone 1 has a total area of 1,850 ha. The second phase of the project, where Foxconn will locate its new factory, is being deployed in Nghi Dong and Nghi Hung communes, Nghi Loc district with an area of 355ha.

Phase 1 with an area of 144ha deployed in Nghi Long and Nghi Thuan communes has attracted around 20 secondary projects including Goertek's plant. 

In January 2021, Zhuo Xian Hong, CEO of Foxconn's subsidiary Fugiang paid a visit to Nghe An to survey the locations for its new project in Nghe An. Meeting with Vinh University, Fugiang wanted to learn more about the province's human resources.

Going with the Director General of the Foreign Investment Agency (Ministry of Planning and Investment), Vice Chairman of Nghe An Provincial People's Committee, and Head of Southeast Economic Zone Management Board at that time, Hong emphasized that Foxconn was looking forward to investing in Nghe An. 

This group has cooperated with other schools in Nghe An and regularly gives scholarships to students as well as commits to providing job orientation for students after graduation.

Before establishing Fu Wing Interconnect Technology, Foxconn's subsidiary New Wing Interconnect Technology (Bac Giang), also actively recruited engineers for the upcoming project in central Vietnam.

On March 18,  Foxconn held a recruitment interview for final-year students at Vinh University of technology education to recruit more than 200 engineers.

The construction of the factory in Nghe An seems to be in line with Foxconn's plan to expand production in Vietnam and India to reduce dependence on China market.

In February 2023, Foxconn signed a $62.5 million worth agreement with Saigon-Bac Giang Industrial Park Corporation to rent a land plot of 45 hectares. The land is located in Quang Chau industrial zone, Bac Giang province. The lease will last until February 2057.