Foxconn slows down investment in Vietnam
The Foxconn Group apparently has slowed down its investment in Vietnam as the group has continued to build up production lines in India and Indonesia in order to roll out products for emerging markets, according to industry sources.
The Vietnam government has recently canceled a license it granted to Foxconn in 2008 to build a US$200 million plant for the production of handsets, PC systems and other electronics as the Taiwan-based EMS giant has so far failed to carry out the planned investment project.
However, Foxconn has given investment priority to India and Indonesia as the domestic markets in these two countries are much larger than that in Vietnam, indicated the sources.
Additionally, both India and Indonesia have enacted stringent regulations requiring foreign investors to produce a certain ratio of parts and components locally.
Foxconn has set up a number of plants in India, mainly for production of iPhone and iPad devices for Apple. Foxconn has also committed investments in such segments as e-commerce, clean energy, and Big Data in India.
Meanwhile, Foxconn has committed to invest at least US$1 billion in Indonesia, mainly for the production of handsets.