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Asus moving to Vietnam - China getting too expensive?

Posted on Friday, December 07 2007 @ 21:13:58 CET by

Sources close to ASUS claim the firm is planning to move its production to Vietnam, DigiTimes reports.

The reason for the switch to Vietnam would be new labor laws in China that come into effect next year and because the Vietnamese government is promising the motherboard maker several benefits:
The Vietnam government has promised to provide several benefits and tax reductions which have persuaded Asustek to relocate Pegatron Technology, one of the planned subsidiaries that will result from Asustek's spin-off in January 2008, to Vietnam where it will focus on the production of PC related products and components, noted the sources.

If the movement plans are settled, it is expected they will trigger a trend for Taiwan-based IT companies to move their production lines to Vietnam in order to reduce the heavy reliance on China, added the sources.



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