Compal Group expects exports from its current assembly plant in Vietnam in 2019 is US$500 million.
Taiwan’s leading computer maker Compal Group plans to expand its production capacity in Vietnam to raise the group’s exports to US$1.5-2 billion per year, according to Ray Chen, the group’s vice president.
Deputy Prime Minister Trinh Dinh Dung (r) and Vice President of Compal Group Ray Chen (l). Source: VGP.
Compal Group’s existing assembly plant in northern province Vinh Phuc has been put into operation, meeting the quality requirements of global computer manufacturers, Chen said in a meeting with Deputy Prime Minister Trinh Dinh Dung on April 10.
The group expects exports from the plant in 2019 reach US$500 million, Chen added.
Deputy PM Dung highly regarded Compal’s investment activities in Vietnam, as well as its plan for production expansion in the future.
Dung said the government is committed to improving the local business environment, aiming for greater national competitiveness and becoming an attractive investment destination for both local and foreign enterprises.
According to Dung, Vietnam is willing to support foreign investors doing businesses in Vietnam, including Compal.
Last November, another Taiwanese tech company ASUS said it was considering the relocation of its Chinese production capacities to Vietnam, due to high tariffs imposed by the US on Chinese-made goods.
Economist Pham Chi Lan said Vietnam would benefit most if tech giants from North America, Europe and northeast Asia shifted investments from China to Vietnam, according to South China Morning Post.
Previously, a survey of companies from both US and China, published by the Guangzhou-based American Chamber of Commerce (Amcham) in South China, showed that most survey participants are looking at shifting production, assembly or sourcing of supplies to third countries, with Southeast Asia as the leading choice.
Some companies are already putting such plans into motion. Panasonic, for example, is moving production of car electronics from China to Thailand, Malaysia and Mexico. China’s GoerTek, which assembles wireless earphones for Apple, has notified suppliers that it intends to relocate some of its production to Vietnam. Chinese polyester producer Zhejiang Hailide New Material is investing US$155 million in a factory in Vietnam with an eye toward US exports.