Electronics assembler Hon Hai to spend millions on worker accommodation in Vietnam: report
TAIPEI, NNA - Hon Hai Precision Industry Co., a major iPhone assembler, has proposed spending 7.4 trillion dong ($318 million) to build living quarters for workers in Vietnam, as it seeks to increase worker productivity in a reported walkup to making iPhones.
The contractor better known as Foxconn Technology plans to build the settlements near industrial parks where its plants located, domestic news website VnExpress International reported Wednesday. Its plants are in the provinces of Bac Giang, Bac Ninh and Vinh Phuc, all near Hanoi.
If approved by Vietnamese authorities, VnExpress International said, Hon Hai would build worker housing on 16.7-hectare land in Bac Giang for 3.42 trillion dong. It’s also planning a 6.3-hectare in Bac Ninh and a 9.9-hectare project in Vinh Phuc, the report said.
A Hon Hai spokesman based in Taipei reached by NNA on Wednesday confirmed the company was building worker housing but declined to cite costs. The news report’s estimates are too high, he added.
Hon Hai makes parts for computers, cars and electronic gear in Vietnam, where it has operated since 2007.
Hon Hai and its Taiwanese peer Pegatron Corp. assemble most iPhones at their plants in China. Hon Hai may be fixing to assemble the phones in Vietnam, according to a report in the Taipei-based Economic Daily.
Hon Hai logged monthly revenue of NT$387 billion ($13 billion) in May, reflecting 0.72 percent growth over 2019, the second consecutive month of year-on-year expansion after a sharp drop in February. China factories closed that month as the country grappled with the world’s first COVID-19 outbreak.