Intel seeks to build US$605m chip plant in Vietnam
(AP)
Updated: 2006-01-05 16:30

Intel Corp., the world's largest chip maker, is seeking the Vietnamese government's permission to build a microchip plant worth US$605 million, an official said Thursday.

"We received the application Wednesday and are considering it," said the official at the Ministry of Planning and Investment's Foreign Investment Department who identified herself only as Vinh.

Vietnam encourages foreign firms to invest in high-tech industries and Intel's project, if approved, would become the largest high-tech investment in the country.

Officials at Santa Clara, California-based Intel could not immediately be reached due to the time difference.

The ministry official said the project of this size needs consideration of several government ministries and the prime minister will have the final decision. A license could be issued within 45 days, she added.

Thursday's Youth newspaper reported that the plant, which will produce microchips and computer parts, will be built on a 46.7 hectare (115 acres) lot of land on a high-tech park in southern commercial center of Ho Chi Minh City and will employ 2,000 people.

The ministry official said the U.S. chipmaker's project will give a big boost for Vietnam's foreign investment, which received US$5.8 billion in commitment in 2005, an increase of 38 percent from the previous year.

The government hopes to get more than US$6 billion in pledged foreign investment this year.

In 2005, Vietnam's total domestic sales of computers and PC equipment were estimated to reach US$700 million, a 30 percent rise from 2004. The country's information technology exports for the year were also valued at $700 million, up 35 percent on year, according to figures from Ho Chi Minh City Association of Information Technology.

Currently, about 250 U.S. firms directly invest in Vietnam with total capital of US$1.4 billion, according to government statistics.