Laptop manufacturers have taken a migration course from China to Vietnam

Laptop manufacturers have taken a migration course from China to Vietnam


China is still responsible for 90% of the world's laptop production, but the situation will start to change in the coming years, and US sanctions combined with the pandemic are just some of the factors contributing to the transfer of production outside the country. By the end of the decade, only 40% of new laptops will be of Chinese origin. A study conducted by the Market Intelligence & Consulting Institute (MIC) suggests that Vietnam and Thailand will be the main migration destinations for laptop manufacturers from China. First, the level of wages in China has increased, and it is no longer so profitable for business owners to maintain local production. Second, the high degree of concentration of production capacity in one country gives rise to risks of a geopolitical nature. Last year, about 160 million laptops were produced worldwide, and Chinese production was responsible for 90 % of this volume. Contract laptop manufacturing is now mostly done by Taiwanese companies, but they have started moving Assembly plants to Vietnam or Thailand. For example, Wistron started assembling laptops for the American market in Vietnam in order to avoid the increased customs duties that are imposed on goods of Chinese origin when imported to the United States. Compal Electronics also intends to establish laptop production in Vietnam, and Quanta Computer is targeting Thailand. Foxconn also expects to start producing laptops in Vietnam. This year, laptop sales may grow by 6% to 170 million units precisely because of the self-isolation caused by the pandemic. Devices running the Google Chrome OS operating system are in high demand.
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