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Quanta mulls Vietnam plant

By Reuters News Service
Johannesburg, 02 Jan 2008

Taiwan's Quanta Computer, a contract laptop PC maker, said on Wednesday it was studying a plan to build a plant in Vietnam, or in other emerging markets amid rising labour costs in China.

"We are doing feasability studies in Vietnam and in other countries which we think may be good investment opportunities," said a Quanta spokeswoman.

However, she added that nothing had been finalised and declined to give a specific timetable or investment amount for any of the potential projects.

Quanta, which supplies US brands such as Apple, Dell and Hewlett-Packard, said it is building facilities in Vietnam and plans to invest $500 million in the country's northern region.

Taiwan-based Foxconn Technology, a firm under the Hon Hai Group, has also signed an agreement to invest $1.1 billion in a plant in Vietnam to make cellphones, as Asian firms seek lower-cost production centres to defend profit margins.

Numerous Taiwan manufacturing companies, which have been producing the likes of computers and handsets in China for major Western brands, have begun to look elsewhere, as labour costs in China have steadily increased, and are expected to rise a further 20% to 25% this year, said analysts.

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