Meiko Electronics Vietnam Company Limited is a wholly Japan-invested firm, specialising in producing electronic printed circuit boards (PCB), installing spare parts and finished electronic products (EMS). Currently, the company is nearing completion of work on a plant with total investment capital of up to US$300 million (the sixth biggest foreign-invested project in the country and the biggest in Ha Tay) to start operation in August this year. Once operating, the plant will create jobs for 7,000 workers, gaining annual revenue of US$1.7 billion and paying US$30 million into the state budget. The project in progress has proved the positive changes in investment environment in Ha Tay . In light of the significance of the project, VIB Forum interviewed Mr Wataru Kato - General Director of Meiko Vietnam:
Why did Meiko Group decide to invest its biggest project in Vietnam, and Ha Tay Province in particular?
Before investing in Vietnam, we had two big plants in China, one in Guangzhou and one in Yuhan. In the strategy for development and expansion of Meiko Group, we don’t want to focus only on China. Like many other investors, we have also applied the policy “China-Plus-One”. Vietnam holds many advantageous elements that we can choose. First, this is a large consumption and labour market, with more than 80 million people and a fast growing economy. Second, Vietnam is near China (Hanoi is near Guangzhou – the major production plant of the group), so it is convenient for production and consumption activities. We selected Ha Tay because the local authorities have committed to support us to ensure sufficient electricity and water sources, indispensable for the production of electronic circuits.
When Meiko decided to invest in this project, what does your company want to bring to Vietnam?
What we would like to bring to Vietnam is the operation principles and targets of the group. Whether investing in Vietnam or China, we always want to provide the local society and people with the best products and services, bringing pleasure and happiness to workers. To do so, we always have to try to overcome challenges.
What difficulties have faced Meiko Vietnam as the price of materials, fuels, and labour has kept rising since the project was begun?
(smile) You know! These elements are out of the control of our company. Meiko is not the only company that has to suffer great pressure from soaring input prices. Therefore, we can only conserve where possible and properly use input materials, to raise the competitiveness of products.
In what areas have you been satisfied when carrying out the project in Ha Tay, and what recommendations would you make for local authorities of Ha Tay?
I myself have felt pleased with the cooperation of the local authorities. For example, in the examination in February, after listening to our difficulties in implementing the project, Ha Tay Province Chairman assigned relevant departments to deal with and help the investor overcome difficulties, such as speeding up progress of the 110 KV electricity wire line for the industrial park, removing the concrete blending station, dredging Yen Son channel; working with Vinaconex Corporation on clean water supply for the industrial park; Ha Tay Investment and Development Joint Stock Company is speeding up the completion of infrastructure system in the industrial park. These activities have complied with the province’s commitments with Meiko Vietnam, especially the waste water treatment plant, to be completed in August 2008.
The company is beefing up human resources for the new plant. You have had the chance to meet Vietnamese labourers, what is your impression of them?
In general, Vietnamese labourers are smart and skilful. They will do everything well if they are systematically trained. Besides, I am very impressed by the attitude and the friendly behaviour of Vietnamese people with other people, particularly foreigners.
Reported by Ngo Khuyen – Trinh Long
Vietnamese
