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Eye on Vietnam, The New Electronics Manufacturing Hub

Jan 19, 2019 Picture:  Major electronics makers are desperately seeking new production bases as the U.S.-China trade war shows no signs of abating. For many, Vietnam is the top choice, with a powerful electronics cluster taking shape in the northern part of the country. We went there to find how what’s happening. At the beginning of 2007, not long after Vietnam gained accession to the World Trade Organization, Hon Hai Precision Industry (Foxconn) Chairman Terry Gou set out from his factory in Shenzhen and drove through Nanning in the Guangxi Autonomous Region to Hanoi in Vietnam. (Read: Terry Gou's Secret Bases) He wanted to get a firsthand look at a possible cross-border transportation route in anticipation of setting up a Hon Hai assembly line in northern Vietnam, where wages were less than a third of those in Shenzhen. The factory there would be fed parts and components from the company’s plants in Guangdong and Guangxi provinces. At the time, Gou realized that, with the drive from his plant in Shenzhen to Nanning taking 13 hours and the 300-kilometer drive from Nanning to Hanoi taking only six to eight hours, he could ship goods from the Shenzhen facility in the evening and have them in Bac Ninh just west of Hanoi the next morning, ready to be processed. One person familiar with Hon Hai’s operations described Gou’s thinking behind the strategic move and why he opted against southern Vietnam, where most Taiwanese were investing at the time, saying, “If it had been southern Vietnam, which was much farther away from China’s supply chain, the timing of the shipments would not have worked.” Consequently, Hon Hai bought more than 400 hectares of land in Bac Ninh that included space in the future for upstream suppliers in the supply chain. The company’s... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, Eye on Vietnam, The New Electronics Manufacturing Hub, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you Eye on Vietnam, The New Electronics Manufacturing Hub

 

 

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Published By: ASIA TODAY - Saturday, 19 January

 

 

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