DailyTech - NEC Opens Second Factory in Vietnam

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IT NEC Opens Second Factory in Vietnam
Tuan Nguyen (Blog) - June 30, 2006 5:50 PM

8 comment(s) - last by bpwilldo.. on Jul 3 at 5:19 PM

Vietnam poised to be the next mini Silicon Valley

NEC announced this week that it has opened its second manufacturing facility in the Loteco Industrial Park in Vietnam. NEC says that the new facility will hold roughly 1,000 staff members and produce such products as transformers, integrated electronics, fiber optics and anti-magnetized parts for electronic use. NEC said that the new facility will help increase the company's overall capacity of parts from 14.7 million units to 20 million units annually. The company also states that its decision to open another facility in Vietnam stems from the quality of workmanship. For a Japanese electronics manufacturer to give this kind of remark to Vietnam is quite an accolade.

The new facility will produce electronics parts and ship them world-wide said NEC. The Letco Industrial Park area is also a joint project between another two other companies: Sojitz Japan and Thasimex, a local Vietnamese industrial company. Totally roughly 11,000 square-feet, NEC's new facility will help increase its export revenue up to $5M USD per month.

There have been an increased number of foreign investments into Vietnam since the beginning of the year. DailyTech previously reported that many companies were now looking beyond India and Taiwan and more into Vietnam as an untapped resource. Intel recently applied for permission from the Vietnamese government to open a fabrication facility in the Ho Chi Minh area and Western Digital was reported to be opening an Asia support facility in Vietnam as well.

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working conditions?

By xit2nowhere on 7/1/2006 3:33:17 AM , Rating: 2

Anybody has an idea what kind of working conditions they'll have over there?

RE: working conditions?

By crystal clear on 7/1/2006 6:57:12 AM , Rating: 2

Same as china,ofcourse-maybe even more worse.
These regions dont really care for their workers like in the
West.
For the workers its a great opportunity -something better
than nothing.

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RE: working conditions?

By Mikey on 7/1/2006 8:33:42 PM , Rating: 2

If anything, it should be better then china's working conditions. I've been to Vietnam and have been to a few of the factories. Sure, the people get paid close to nothing, but i highly doubt working conditions are as bad as chinas.

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RE: working conditions?

By masher2

(blog) on 7/2/2006 3:05:14 PM , Rating: 2

All depends on the area. I've been to Southern Vietnam myself, and conditions there really weren't that bad. I hear the economy in the northern half of the country is considerably worse.

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RE: working conditions?

By bpwilldo on 7/3/2006 5:19:00 PM , Rating: 2

With only 11 square feet of space per worker, I'd say the conditions will be cozy.

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sweet !

By JaredExtreme on 6/30/2006 11:03:04 PM , Rating: 2

Woot now I can get some quality NEC AK-47's !

RE: sweet !

By wingless on 6/30/2006 11:47:21 PM , Rating: 2

funny and ignorant at the same time...

I am amazed like everyone else to see the Japanese praise SOUTHEAST ASIANS. WOW! That wouldnt have happened in the 80s...

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