In the first phase, with an investment capital of US$16 million, the factory will be built over 40,000sq.m in Quang Chau Industrial Zone. It will produce magnetic components, information communication products and power supplies, all for export.
Construction is expected to begin in the first quarter of this year and to wrap up in 2010.
The factory is expected to create 2,000 jobs in the region and post an annual export turnover of $30 million.
Despite the current global economic crisis, the company decided to invest in Bac Giang Province because of its advantageous location close to the capital and efforts made by provincial authorities to streamline administrative procedures, said Universal Microelectronics Co Chairman Jimmy Ou.
The official further said he still believed in Viet Nam's economic potential and predicted that more foreign enterprises, especially from Taiwan, would come to the country to seek business and investment opportunities.
During the licensing ceremony yesterday, Bac Giang People's Committee Chairman Nguyen Dang Khoa vowed that local authorities would create favourable conditions for the Taiwanese investor to implement the project as scheduled.
Financed by the Kinh Bac Urban Development Group, the 426ha Quang Chau Industrial Zone is one of the country's most attractive locations for hi-tech projects.
Late last year, Sanyo HQ Viet Nam, a subsidiary of Japanese Sanyo Electric Co, kicked off the construction of a $95 million factory producing electronic optical-transmission components here. (VNS)
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