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Vietnam gets notebook boost from major manufacturer

Tax breaks used to lure Taiwanese firms
Wed Aug 15 2007, 09:49
A REPORT SAID Compal, a major original design manufacturer (ODM), will build a $30 million notebook plant in Vietnam.

According to Digitimes, over 85 per cent of notebooks come from factories around Shanghai, and Compal's move will help spread the risk.

ODMs like Compal produce the majority of notebooks in the world, either under plain vanilla types or made to order to specifications from multinationals like Dell and Hewlett Packard.

Spreading shipment risks might be one reason for Compal to shift. Surely only the absurdly cynical would suggest that labour costs in Vietnam are cheaper, while the same Digitimes article said the country is also luring a number of other Taiwanese majors there through tax incentives. µ

L'INQ
Digitimes

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