A number of the world’s large electronics manufacturers have stated they will withdraw from China to move to Southeast Asia, including Vietnam, the local VietNamNet reported.
In late February, the Taiwanese Printing Circuit Manufacturers’ Association decided to build a 300-hectare complex in Hanoi, which can serve 10-20 manufacturers. The project is set to begin this August.
Some big Taiwanese companies like HannStar Board, Gold Circuit Electronics (GCE), Unimicron Technology, Tripod Technology and Compeq Manufacturing have sent representatives to Vietnam to survey.
In early March, the world’s fourth-largest LCD screen producer, Taiwan’s Chi Mei Optoelectronics, announced its plan to build an LCD factory in Vietnam. Chi Mei hasn’t revealed the detailed plan but according to Taiwanese newspapers, Chi Mei will cooperate with Wistron Corp, a laptop producer, to invest in Vietnam, which has cheaper labor costs than China. Moreover, Chi Mei’s clients, Compal Electronics, Acer and Foxconn, have plants in Vietnam already.
The world’s fourth-largest camera producer, Japan’s Olympus group, has decided to close a factory in China and open one in Vietnam to cut risks and costs. This $44.35 million project is expected to begin in late 2008.
According to the Vietnam Electronics Industry Association, the Netherlands’ Philips is seeking component part suppliers in Vietnam to move its factory from China to Vietnam. Philips representatives met with some member firms of the association, Mitsustar, CMS and some others in Vietnam. This group currently places orders worth $8 billion in China.
STMicroelectronics is currently organizing a workshop to offer technology and solutions to Vietnamese partners. According to Do Tien Dung, STMicroelectronics Executive Manager in Asia – Pacific, this group has not thought of building a factory in Vietnam yet but it is seeking partners to transfer technology and solutions in manufacturing fluorescent lamps, electric meters, and TV signal processors.
Canon group has stated it will build a new printer factory in Vietnam. According to Reuters, Canon will spend around $50 million on this project, which is scheduled to be erected in northern Vietnam. This plant will specialize in assembling low-cost printers to sell in developing countries.
“The electronics industry of Vietnam is quite attractive to foreign investors because China, the world’s factory, is losing its advantage. Stricter laws on the environment, the revaluation of the yuan, the increase of the minimum salary and the new labor contract law which took effect in early January 2008 are creating difficulties for employers to fire workers and hindering production expansion in China,” said Dung.
However, Truong Gia Binh, FPT General Director, said the move of electronic groups to Vietnam is the result of many reasons, for example, Vietnam’s favorable geographic position, stable politics, impressive economic growth, cheap labor cost and high potentials for hi-tech development. In recent years, electronics and IT industries in Vietnam have recorded the average growth rate of 25-40 per cent a year.
In recent years, electronics and IT industries in Vietnam have recorded the average growth rate of 25-40 per cent a year. (VietNamNet)
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