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Quanta eyes Vietnam, other countries for new factory

Quanta Computer Inc (廣達電腦), the world's biggest maker of laptop computers for other companies, is assessing locations in Vietnam and other emerging countries to build a factory, its first outside China, to "reduce risks."

"There are risks in having only one production site, such as natural disasters," Carol Hsu (許昭瑾), a Quanta spokeswoman, said yesterday by phone in Taoyuan, where the company is based. "We have to plan for the future." She declined to say what other locations were being considered for Quanta's second overseas notebook assembly center or when the new factory will start operating.

Quanta Computer may join other Taiwanese companies, including Hon Hai Precision Industry Co (鴻海精密), the world's biggest maker of electronics products for other companies, in setting up factories in Vietnam because of lower costs and an economy that is growing at the fastest pace in more than 10 years. The computer manufacturer moved its last production line to China from Taiwan in 2005.

Labor costs, which make up less than 2 percent of Quanta's expenses, are lower in Vietnam than in China, Hsu said. The Southeast Asian nation's economy last year expanded 8.5 percent, the fastest pace since 1996, led by manufacturing and services.

Quanta's Vietnam facility will start production as early as the second half of next year, the Economic Daily News reported yesterday, citing an unidentified company official.

Taiwan is Vietnam's biggest foreign investor, the paper said.

Taipei-based Hon Hai said in August last year it planned to invest US$5 billion over five years in Vietnam to manufacture parts for computers, digital cameras and mobile phones.

Taiwan's Compal Electronics Corp (仁寶電腦), the world's second-biggest laptop computer maker, is also setting up manufacturing centers in Vietnam.

Compal, based in Taipei, said in October it will invest US$500 million to build a factory to produce computers and electronics components in Vietnam.
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