Vietnam is Asia’s New Tech Manufacturing Hub

Samsung-Vietnam-Electronicsphoto via dientutieudung.vn

It all started in 2010. Intel built its $1 billion chip manufacturing plant in Ho Chi Minh city, Vietnam. Vietnam’s electronic manufacturing dream had arrived. Gone would be the days of textile and food exporting. People were saying hello to a hi-tech Vietnam.

But later in 2011 and early 2012, the dream was dwindling, as the economy was shot and there was an environment that didn’t play well for foreign investors, and that was turning people off.

The latter half of 2012 has seen a change, with electronics factories popping up everywhere as you can see in the list below (dollar figuress indicate amount each company has committed to its Vietnamese factory):

Of course, the most significant newcomers in this list are Samsung and Nokia. Nokia is still the dominant player in the Vietnamese mobile market and Samsung contributes 10 percent of Vietnam’s exports.

Besides Nokia, most of these electronics manufacturers are from South Korea and Japan. The main draw for companies from these two countries is the low labor wages. In some cases, Vietnamese workers can be paid as little as one-third of Chinese labor costs. Cheap labor is Vietnam’s new brand.

And so armed with this low-cost labor, Vietnam will soon become known for hi-tech manufacturing. Textiles are no longer Vietnam’s biggest export. With small companies like Setech Viet building small consumer domestic products and bigger companies like TOSY building robots for the global market, we’re on the cusp of a hardware-oriented Vietnam. I wouldn’t be surprised if by 2016, a major Vietnamese hardware maker will build and operate its own factory.[1]

[1] This of course assumes that Japanese managers and technicians will transfer knowledge and experience to their Vietnamese counterparts.


The post Vietnam is Asia’s New Tech Manufacturing Hub appeared first on Tech in Asia.
Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

Most Popular

  • The Shocking Reason You May Be Tired

    The Shocking Reason You May Be Tired

    Healthy Living - Fri, Apr 18, 2014 11:33 PM PHT
    The Shocking Reason You May Be Tired

    So my doctor prescribed two medications, including a synthetic thyroid hormone to replace what my body was having trouble making. It turns out that my story is actually quite common, especially since the risk for thyroid disorders tends to increase as you get older-and women are up to eight times more likely than men to develop one. I was also surprised to learn that having an underactive thyroid is the most common problem, but it can be tricky to diagnose. The gold standard for measuring …

  • Weight Loss Mistakes Beginners Make

    Weight Loss Mistakes Beginners Make

    Healthy Living - Mon, Apr 21, 2014 10:38 PM PHT
    Weight Loss Mistakes Beginners Make

    Weight-loss rookies beware: despite your best efforts, you may be making some well-intentioned mistakes that not only halt your progress, but can actually cause weight gain, leaving you feeling anything but motivated. …

  • Do You Have a Bowel Problem?

    Do You Have a Bowel Problem?

    Healthy Living - Tue, Apr 22, 2014 10:34 PM PHT
    Do You Have a Bowel Problem?

    Those sweets are just one category of "fermentable carbohydrates," foods that can wreak havoc on some people's guts (another common irritating class is lactose), causing diarrhea, gas and/or bloating. …

  • If You See the Word “Detox,” Run--and 5 Other Diet Claims Never to Believe

    If You See the Word “Detox,” Run--and 5 Other Diet Claims Never to Believe

    Healthy Living - Fri, Apr 18, 2014 9:41 PM PHT
    If You See the Word “Detox,” Run--and 5 Other Diet Claims Never to Believe

    If it sounds too good to be true, it probably is. By Ava Feuer, REDBOOK. …

  • What Your Mouth Can Tell You About Your Health

    What Your Mouth Can Tell You About Your Health

    Healthy Living - Tue, Apr 22, 2014 1:21 AM PHT
    What Your Mouth Can Tell You About Your Health

    Total-body health starts in your mouth--esearch showing that what goes on in your mouth can directly reflect what's happening elsewhere in your body, from your brain down to your private parts, leading to cognitive decline, diabetes, and certain STDs …

POLL
Loading...
Poll Choice Options