On July 7, 2024, He Yida, chairman of the Vietnam branch of Arizon RFID RF, spoke at the master plan announcement of Hong Yen Province, Vietnam, announcing that Arizon RFID will invest 67 million US dollars in Hong Yen Province in northern Vietnam. The company received the investment registration certificate for the project at a meeting held on Sunday to discuss the Hong Yen Province 2021-2030 Master Plan and Investment Promotion.
Ho Yida, chairman of Arizon RFID Vietnam, said the company decided to invest in Hong Yen province after inspecting 20 locations around the world. He said their goal is to make the Hong Yen plant the world's largest RFID plant. The executive noted that Arizon RFID has been one of the fastest-growing RFID companies in the world over the past decade, growing 20-40% annually, and its current largest plant in Yangzhou, China, began operations in 2014.
Ho Yida said the Hong Yen plant's production capacity is expected to be twice that of the Yangzhou plant, 30 billion RFID products per year, equivalent to global demand in 2023.
The Ministry of Planning and Investment of Vietnam and the Hong Yen authorities issued investment registration certificates and principle approvals to 24 projects at the meeting. These include 19 foreign investment projects worth $630 million and five domestic projects worth VND10 trillion ($393.6 million).
Why are more and more RFID companies going to Southeast Asia to build factories?
In recent years, more and more RFID companies have chosen to build factories in Southeast Asia. This phenomenon involves a comprehensive consideration of multiple factors. In addition to some geopolitical factors that are not convenient to explain, Southeast Asia also has the following advantages:
Low labor costs: The labor costs in Southeast Asia are relatively low, and the population structure in Southeast Asia is highly young and the labor resources are abundant. This is a significant cost advantage for the RFID manufacturing industry, which requires a lot of manpower. By building factories in Southeast Asia, RFID companies can reduce production costs and improve profitability.
Gradually mature infrastructure: In recent years, Southeast Asian countries have made remarkable achievements in infrastructure construction. Transportation facilities such as roads, railways, and ports are constantly improving, providing RFID companies with a good production environment and logistics conditions. In addition, the communication and Internet infrastructure in Southeast Asia is also increasingly improving, providing strong support for the application and promotion of RFID technology.
Policy support: In order to attract foreign investment and promote economic development, Southeast Asian countries have introduced a series of preferential policies. These policies include tax exemptions, land concessions, financing support, etc., which provide a good investment environment for RFID companies to build factories in Southeast Asia. At the same time, Southeast Asian countries are also actively promoting digital transformation and technological innovation, providing a strong guarantee for the development of high-tech industries such as RFID.
Innovation promotion: Some countries in Southeast Asia are actively promoting technological innovation and digital transformation, providing a good innovation environment for the development of high-tech industries such as RFID. This innovation environment will help RFID companies achieve technological breakthroughs and industrial upgrades in Southeast Asia.
This paper is from Ulink Media, Shenzhen, China, the organizer of IOTE EXPO (IoT Expo in China)
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