Jabil to Expand Vietnam Operation
Jabil Circuit, Inc. (JBL), a global provider of design, engineering manufacturing and supply chain solutions, has signed a memorandum of understanding (MOU) with the management board of Saigon Hi-Tech Park in Vietnam. The agreement will allow the company to expand its current operation in the hi-tech park.
Vietnamese governmental officials joined the Saigon Hi-Tech Park management board and Senior Jabil management at Jabil’s new Blue Sky Center in San Jose, CA for the signing. The memorandum will allow for additional investments to expand Jabil’s existing operations in Vietnam. The new facility, slated for groundbreaking in 2017, will focus on high-volume production of computing, storage, networking, telecommunications, automotive, digital home, mobility, point of sale, printing, industrial and energy sectors.
“The Vietnamese government’s support of our expansion was critical and marks an important new milestone for Jabil in Vietnam and greater Asia,” said Alessandro Parimbelli, executive vice president and chief executive officer, Enterprise and Infrastructure, Jabil. “As we continue to expand our services for customers in the region, we are also helping to support the growth and economic strength of Ho Chi Minh City and Vietnam.” Parimbelli said Jabil is planning to develop local talent for future leadership positions by providing training and development opportunities. He indicated that Jabil’s goal was to increase the percentage of local skilled professionals by creating more than 3,000 new jobs in the local area over the next five years.
By expanding in Vietnam Jabil gains important benefits including access to a large pool of industrious workers, mid-level engineers and managers. Vietnam also offers favorable labor costs in a robust economy that has grown at a rate of 6 percent for the last four quarters. A significant source of that growth is the high-tech manufacturing sector.
Saigon Hi-Tech Park is a state-owned industrial park providing tax incentives, reasonable land lease costs and a strategic location to attract technology companies. Jabil began operations in Vietnam in April 2007 and has grown about 50 percent year-over-year for the last five years. Currently, Jabil Vietnam occupies 300,000 square feet of building space and employs 2,600 employees. The new facility will occupy up to one million square feet of land.