HCMC, Jun 22, 2011. Intel Products Vietnam is searching for more domestic suppliers to increase the ratio of local content in its products that are assembled at Saigon Hi-Tech Park (SHTP) in HCMC.
Some 50 domestic enterprises joined a seminar held on Tuesday as part of a cooperation program between SHTP and the world’s largest chipmaker to develop a local supply chain for Intel, and supporting industries for hi-tech firms at SHTP and in the city as a whole.
Nguyen Hoai Huong, manager of purchasing at Intel Vietnam, said at the seminar that her company had plans to increase the percentage of locally made materials for its products and spend more on local supply.
Intel Vietnam’s US$ 1-billion plant that assembles and tests chipsets is designed to produce central processing units (CPU) in future. When in full production, the facility is expected to employ up to 4,000 people and export US$ 5 billion to US$ 20 billion worth of chipsets a year.
The company is running just one production line. Three more lines are under construction and may be up and operating by the end of this year. Four more lines will be added from 2012 onward.
Intel Vietnam had to date qualified 55 suppliers in Vietnam but almost all of them are Vietnam-foreign joint ventures and foreign-invested companies while Vietnamese-owned companies make up a small fraction. However, most of the local firms supply simple products and services, so Intel Vietnam still has to import parts to assemble its products.
SHTP has built a Supporting Industry E-portal with the aim of providing initial information to investors addressing their needs in seeking suppliers, along with the needs of domestic businesses to expand market share for their products