Hon Hai plans $5b investment in Vietnam

Taiwan's Hon Hai Technology Group plans to invest $5 billion in Vietnam, dramatically increasing its commitment to a country drawing growing attention from high-tech manufacturers, an official, quoted by an Associated Press report said.

The Associated Press report said in an agreement signed in Hanoi, Hon Hai agreed to quintuple its planned investment in Vietnam, where it intends to build factories in six provinces across the country over the next five years, said Dang Van Hien of the Ministry of Planning and Investment.

Hon Hai is the world's No.1 contract electronics manufacturer by revenue. Its customers include Hewlett-Packard and Apple, and it produces computer components and other electronic products at plants in Asia, Latin America and Europe, the report said.

The Hon Hai group, which includes Foxconn International Holdings, makes iPods for Apple Computer and mobile phones for Nokia, the report said.

Vietnam has one of the world's fastest-growing economies, inexpensive labor costs and a large supply of young, well educated workers. Its appeal to investors has also grown since it joined the World Trade Organization in January.

The company is investing $163 million in those four plants. It already has factories in Taiwan, China, Brazil, the Czech Republic and Ireland.