Taiwanese Notebook PC Makers Reduce Production in Vietnam

Facing severe depreciation of Vietnamese Dong and labor strikes, Taiwanese notebook PC makers have gradually reduced their focus in Vietnam and considered setting up their new factories in China, instead, according to industry sources.

Promising markets and favorable investment environments of Vietnam had attracted some Taiwanese heavyweight electronics companies, including Hon Hai Precision Industry Co Ltd and Compal Electronics Inc to locate their manufacturing plants in the country since 2007.

Compal, the world`s second largest notebook PC maker, once invited a number of its contract suppliers of parts and related peripherals to jointly build an integrated supply chain in the country. Presently, the firm`s Vietnam plant is still under construction, and scheduled for trial production in the third quarter as the earliest.

However, plagued by unstable social and economic situations in the country and looking forward to a sustainable basis for business growths, the firm has allegedly considered constructing its second overseas manufacturing base in Kunshan of Jiangsu Province, central China.

Industry insiders believe that the plan is very likely to come true, partly because Compal has deployed its business operations in China for years, and partly because the investment environment in China is more favorable than in Vietnam, especially at a time when the Chinese government has actively bolstered development of notebook PC manufacturing industries.

Coincidentally, Wistron Corp, the No.3 notebook PCs maker in the world, has recently decided to set up its second manufacturing base in Taizhou City of Jiangsu Province, China, though having been reportedly going to set up the plant in Vietnam.

Source: CENS