Jabil licensed to build facility in city's hi-tech park, says report
May 09, 2007
Jabil Corporation was awarded an investment certificate to build a US$100-million plant to assemble and test printed circuit boards in HCMC's Saigon Hi-Tech Park (SHTP), becoming the second largest project there, according to a report in The Saigon Times.
The report added: Jabil Vietnam Co. Ltd., the subsidiary of one of the world's largest electronics manufacturing services providers, will develop the factory on a five-hectare plot in the hi-tech park in two stages.
Under its investment plan, the factory will install and examine printed circuit boards, install systems and examine completed hi-tech products, manufacture precise plastic moulds as well as mainboards, network tools, telecom equipment and consumer electronics.
In the first stage, whose production will begin this September, the company will pour some US$30 million to manufacture some 3.5 million products a year. The second stage will start after 2010, when the investment increases to a total US$100 million while output doubles to seven million products a year.
It hopes to make Vietnam a production-for-export location in Asia.
Jabil's strategy is to develop a production base in Vietnam to provide manufacturing, design and repair solutions for its global customer base, said VL Tan, Jabil's vice president of operations for Asia.
"Jabil has relationships with leading companies across a broad range of technology driven industries.
"It is Jabil's intention that the new member will provide its customers with a commercially attractive solution at lower cost, more efficient logistics, high technical competency skill sets and competitive advantages over other manufacturing locations," Tan said.
He said that the key to Jabil's success would be the ability to develop a highly skilled and empowered local workforce and an integrated local supply chain to produce world-class branded high-tech products for export.
Jabil has an immediate opportunity with one of its major customers, Hewlett Packard (HP), a leading global technology company.
"This opportunity fits with the customers' requirement to have an electronics manufacturing solution from Vietnam and Jabil's strategic desire to establish a presence in Vietnam," Tan said.
The successful execution of the project will provide a base to attract further business from other divisions of HP (printers, servers, handheld devices) as well as to demonstrate capability to other potential customers, he added.
Nguyen Dinh Mai, acting president of the hi-tech park, said that the Jabil project would bring about big economic benefits in terms of job creation and export value.
Jabil Vietnam is the first foreign-invested project licensed into the hi-tech park since early this year.
Up to now, a total of 24 projects have been licensed into SHTP with combined pledged capital of more than US$1.36 billion.
source: The Saigon Times