Sharp eyes computer production shift from China to Vietnam

The company plans to temporarily move its personal computers production to Taiwan before switching manufacturing to a new plant in Vietnam, sources told Japanese news outlet NHK.

The plan is expected to start operation after October.

Sharp initially planned to make electronic components at the plant located in Ho Chi Minh City, but it is apparently changing that plan in light of continuing U.S.-China trade tension. 

Sharp’s move follows announcements made by many multinationals about shifting production to Vietnam to avoid trade war impacts.

U.S. footwear maker Brooks Running last month said it would shift the majority of its shoes production from China to Vietnam this year. After the transition is complete, Vietnam will generate 65 percent of its footwear, while China will only make 10 percent.

Apple’s suppliers have also made moves into Vietnam. Taiwanese iPhone assembler Foxconn has acquired the right to use property in an industrial park in northern Vietnam, while Chinese GoerTek last year asked all suppliers involved in its AirPod production to ship all necessary materials to Vietnam.

Samsung last December closed one of two phone factories in China to focus more on low-cost countries like Vietnam and India for production.