US tech giants to expand operations in Ho Chi Minh City

(VNF) - The Ho Chi Minh City People's Committee has given its nod to US-based company Jabil to expand its operation in the city's High-tech Park with an infusion of 500 million USD.

The nod was given during an ongoing visit to the US of Le Thanh Hai, Politburo member and city Party Committee Secretary.

"With the current successes of Jabil Vietnam, we plan to [set up] a 93,000sq.m plant to produce computers, database, network and applied telecommunications," Alessandro Parimbelli, Jabil's senior vice president, global business unit, was quoted as saying by the Government website.

Jabil will also focus on improving technology and training for local human resources by training them abroad, using local components in production and developing local supply chains.

The company's investment is indicative of its belief in the city's auspicious, thriving business environment.

Jabil did not reveal the additional investment, but Vietnamese media surmised the figure could be as high as $500 million, citing sources from the Saigon Hi-Tech Park.

“The Vietnamese government’s support for our expansion was critical and marks an important new milestone for Jabil in Vietnam and greater Asia,” Alessandro Parimbelli, Executive Vice President & Chief Executive Officer, Enterprise & Infrastructure with Jabil, said at the signing ceremony.

He noted that Jabil’s target is to enhance the percentage of skilled Vietnamese professionals by providing more than 3,000 new jobs in the local area over the next five years.

The investment expansion in Vietnam will also offer great benefits to Jabil, including access to a large pool of diligent workers, as well as mid-level engineers and managers, the U.S. company added.

The Florida-based firm, the world's third largest electronics corporation, which provides design, engineering manufacturing and supply chain solutions, began operations at the hi-tech park in April 2007.

Its turnover in Vietnam rose by 50 percent in five straight years and its aggregate exports have topped 1.3 billion USD since its debut.

Its plant employs approximately 2,600 workers.

On the same day the municipal People's Committee also signed a memorandum of understanding with globally-famous chipmaker Intel in training human resources in high technology and development cooperation.

Intel was one of the first international corporations to foray into Vietnam.

Brian Matthew Krzanich, Chief Executive Officer of Intel, received the city delegation.

He called on the city's leaders to help Intel train human resources in high technology, develop supporting industries to boost its use of local components in its products, and allow Intel to import secondhand equipment into the city./.

by VNF