Chinese battery maker Sunwoda plans $300 mln additional investment in northern Vietnam

Sunwoda, a leading Chinese battery firm, plans to invest an additional $300 million at the Yen Lu Industrial Park in the northern province of Bac Giang.

Sunwoda COO Xiang Haibiao told provincial authorities at a Tuesday meeting that the planned expansion was motivated by the favorable investment environment in Bac Giang, including support from the authorities and local workers’ diligence.

The expansion follows Sunwoda’s launch of a subsidiary at the province’s Van Trung Industrial Park in April 2023.

The expanded facility at the Yen Lu IP will employ 5,000 people and reap annual revenues of $1 billion, the executive said, adding that Sunwoda was willing to invest further in Vietnam in line with its growth in the country.

Haibiao also said that the company was determined to ensure environmental protection and utilize technology currently used in China for its production in Vietnam, he noted.

Welcoming the additional investment, Bac Giang Chairman Le Anh Duong noted that China is currently the province’s biggest source of foreign direct investment at over $6 billion, or 30% of the total. Chinese investment has employed 200,000 people.

Duong also highlighted Bac Giang’s advantages for foreign investors, including an abundant workforce with trained workers accounting for 76% of the total, no occurrence of major natural disasters, and a developed traffic infrastructure linking with border gates and airports.

He said provincial authorities and state utility Vietnam Electricity (EVN) have worked to put Bac Giang on a priority list for strong investments in power lines and power stations to ensure stable electricity supply. Bac Giang would add Sunwoda to its list of prioritized electricity consumers, he added.

Under the auspices of Tuesday’s meeting, Sunwoda and local firm Capella Land JSC, developer of the Yen Lu Industrial Park, signed an in-principle investment contract.

Source: The Investor
16/07/2024