Vietnam is set to build its largest factory for making integrated circuits, VietNamNet Bridge reported.

An investment certificate has been awarded to Saigon Semiconductor Technology Inc. (SSTI), enabling the company to build an IC-making factory at District 9 in Ho Chi Minh City, which will cost around $257.5 million.

The factory will manufacture products aimed at meeting domestic demand and replacing imported goods. It is also expected that this endeavour will drive Vietnam's semiconductor industry.

Apart from the factory, SSTI will also develop a research and development centre, as well as a multi-functional line for testing. This will target devices such as light-emitting diodes and solar panels.

Two years ago, Ho Chi Minh City's authorities established an IC programme that aims to generate $100 million to $150 million in revenue. Its other goals also included training around 2,000 technicians and engineers and establishing about 30 enterprises operating in the IC industry by 2017.

Many local and foreign experts at previous seminars held in the city said if the municipal programme on developing the IC industry is realised, it will fuel the economy, add more value to Vietnamese electronic goods and help the country join the global supply chain.

Last week, Viet Nam News reported that the country had announced its plan to develop four key industries that would hopefully advance Vietnam's competence in production and service supply. These industries include electronics, agricultural machinery, agro-fishery processing, and environmental industry and energy conservation, which were highlighted under the Vietnam-Japan cooperation from 2020-2030.

The action plan aims to increase the annual value of the said industries by 20 per cent. The country also hopes that these industries will contribute at least 35 per cent to the country's overall industrial value by the end of the decade. In addition, Vietnam plans to become a major producer of electronics components—using advance environment-friendly technology—by 2030.

Quoting the Ministry of Planning and Investment's Foreign Investment Agency, Viet Nam News also reported that the country succeeded in acquiring $11.18 billion in foreign direct investments in the first three quarters of the year or a 74.5 per cent increase over the same period last year.

Vietnam also licensed more than 1,150 new foreign-invested projects worth $7.63 billion. The $1-billion plant by Samsung Display Bac Ninh Company is the biggest project, followed by the $225-million Dai An Viet Nam-Canadian International Hospital and Texhong Group of China's $215 million Texhong Hai Ha Industrial Park.

South Korea leads Vietnam's sources of FDI from January to September 2014 with $3.55 billion, followed by Hong Kong with $1.52 billion, Japan with $1.43 billion and Singapore with $1.07 billion.

By: DocMemory
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