Foxconn expands production facilities in Vietnam, invests $270 million
Taiwan’s Hon Hai Precision Industry, known as Foxconn, is expanding its production lines in Vietnam and will invest $270 million, according to a report by Nikkei Asia.
The company, which just began the production of liquid crystal displays in Vietnam earlier in November, aims to take advantage of the new Regional Comprehensive Economic Partnership (RCEP) agreement and hopes to bolster its production capacity in the country.
The 15-member RCEP was signed on November 15 in a bid to reduce tariffs and allow seamless trade in Asia. Foxconn plans to roll out full-scale production in Vietnam and receive the benefits of the free trade framework.
Foxconn will soon establish a new local company in Vietnam. Further details have yet to be disclosed, but the company will likely produce PC-related parts such as displays, the report said.
Taiwan is not a part of RCEP, and most of Foxconn’s production bases are in mainland China. Although China is a part of the trading bloc, the uncertainty surrounding Beijing-Washington relations has led many companies, including Foxconn, to search for better production sites.
Vietnam, which is a part of RCEP, is neighbouring China, making it convenient for parts procurement. The country also has cheap labour costs in comparison to other manufacturing destinations in the region such as Thailand, but a far better educated workforce.
Foxconn is currently rushing to shift away from being overly dependent on Chinese production, with the goal of more than 30 per cent of its overall production to be located outside China.
Foxconn manufactures electronic products for major global companies. Notable products manufactured by Foxconn include the BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nokia devices, Xiaomi devices, PlayStation, Xbox and several CPU sockets.
Foxconn first came to Vietnam in 2007. Its three plants in the country manufacture and assemble computers, car parts and other electronics. The company said that Vietnam is its largest manufacturing hub in Southeast Asia.
Taiwan’s Hon Hai Precision Industry, known as Foxconn, is expanding its production lines in Vietnam and will invest $270 million, according to a report by Nikkei Asia. The company, which just began the production of liquid crystal displays in Vietnam earlier in November, aims to take advantage of the new Regional Comprehensive Economic Partnership (RCEP) agreement and hopes to bolster its production capacity in the country. The 15-member RCEP was signed on November 15 in a bid to reduce tariffs and allow seamless trade in Asia. Foxconn plans to roll out full-scale production in Vietnam and receive the benefits of...
Taiwan’s Hon Hai Precision Industry, known as Foxconn, is expanding its production lines in Vietnam and will invest $270 million, according to a report by Nikkei Asia.
The company, which just began the production of liquid crystal displays in Vietnam earlier in November, aims to take advantage of the new Regional Comprehensive Economic Partnership (RCEP) agreement and hopes to bolster its production capacity in the country.
The 15-member RCEP was signed on November 15 in a bid to reduce tariffs and allow seamless trade in Asia. Foxconn plans to roll out full-scale production in Vietnam and receive the benefits of the free trade framework.
Foxconn will soon establish a new local company in Vietnam. Further details have yet to be disclosed, but the company will likely produce PC-related parts such as displays, the report said.
Taiwan is not a part of RCEP, and most of Foxconn’s production bases are in mainland China. Although China is a part of the trading bloc, the uncertainty surrounding Beijing-Washington relations has led many companies, including Foxconn, to search for better production sites.
Vietnam, which is a part of RCEP, is neighbouring China, making it convenient for parts procurement. The country also has cheap labour costs in comparison to other manufacturing destinations in the region such as Thailand, but a far better educated workforce.
Foxconn is currently rushing to shift away from being overly dependent on Chinese production, with the goal of more than 30 per cent of its overall production to be located outside China.
Foxconn manufactures electronic products for major global companies. Notable products manufactured by Foxconn include the BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nokia devices, Xiaomi devices, PlayStation, Xbox and several CPU sockets.
Foxconn first came to Vietnam in 2007. Its three plants in the country manufacture and assemble computers, car parts and other electronics. The company said that Vietnam is its largest manufacturing hub in Southeast Asia.
