Operations start at pace for computer manufacturers

May 8th at 15:11
08-05-2025 15:11:09+07:00

Operations start at pace for computer manufacturers

Computer manufacturers and suppliers have ramped up operations in Vietnam, but are set to face new hurdles amid global policy shifts.

Operations start at pace for computer manufacturers

Expansion of laptop and PC component suppliers in Vietnam is boosting supply chains, photo Le Toan

In late March, Green Precision Manufacturing Vietnam broke ground on its factory in the northern province of Bac Ninh, with investment of over $120 million. Green Precision is a Chinese high-tech enterprise specialising in the research, design, and production of precision components for electronic consumer products, including tablets, mobile phones, speakers, and electronic payment devices.

The factory is slated to begin operations in the second quarter of 2026, with an estimated annual production capacity of 62 million products and a projected production value of over $410 million.

In mid-March, Taiwan’s Lite-On Technology Group held a groundbreaking ceremony for its Lite-On Quang Ninh factory in the northeastern province of Quang Ninh, with a total investment of $690 million. The factory will produce electronic computer components, cameras, wireless network connection devices, power converters, and a variety of other gadgets.

The factory is designed with a total capacity of 124 million products per year, and the first phase is set to be completed in November.

Quanta Computer, a Taiwan-based manufacturer of notebook computers, is also stepping up its computer and peripheral equipment manufacturing factory in the Nam Dinh province, also in the north. With funding of $120 million, the factory was put into operation in November 2024. As of the end of March, the company has doubled its capacity. To facilitate the growth, Quanta Computer seeks to employ about 9,000 workers before the end of 2025.

The expansion of laptop and PC component suppliers in Vietnam is helping to build a more complete and comprehensive industrial supply chain in the country, which could reduce reliance on China for imported inputs and add to Vietnam’s foreign investment appeal.

However, in view of the current reciprocal US tariff situation and escalating tit-for-tat global trade conflict, multinational corporations, including laptop and computer manufacturers, may pause further foreign investment, given the cloudy global economy and excess capacity displaced by the US tariff wall.

“Companies serving the US market may pivot more to ramping up production in near-shoring destinations like Mexico or competing hubs like India or the Philippines, which face lower tariffs,” said Brian Lee, an economist at Maybank Investment Banking Group.

“Nonetheless, firms will think twice about relocating to alternative locations solely on the basis of tariff differentials. The situation now is less clear-cut than the trade war in 2018 – all countries, allies and adversaries alike, risk being targeted by US tariffs, as opposed to the likelihood of incurring their higher tariffs being heavily skewed towards China in the first trade war,” Lee added.

Global multinational corporations tend to consider a multitude of factors beyond tariffs when making decisions. Vietnam has inherent advantages, including established supply chains for electronics and apparel, a large and growing consumer market, a low-cost and skilled labour force, as well as a pro-business regime actively slashing bureaucracy and red tape for investors, Lee explained.

Moreover, Vietnam’s ability to attract export-oriented manufacturing investment does not solely hinge on serving the US market.

“Businesses in Vietnam will find new growth opportunities from alternative markets, even as the US looks inward with high tariffs. Vietnam’s extensive network of free trade agreements put the country in good stead,” Lee said. “We are therefore of the view that beyond the short-term pause in investments (due partly to cyclical factors and trade policy uncertainty), Vietnam will continue being an attractive electronics manufacturing hub.”

VIR

- 11:25 08/05/2025



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