Even though there is a lack of qualified local suppliers.
Vietnam is a member of ASEAN, which is a giant and fast-growing market, plus the infrastructure in Hai Phong also meets the company’s demands. Expanding the Hai Phong plant is thus the top choice of Fuji Xerox.
Fuji Xerox’s two Chinese facilities, in Shanghai and Shenzen, will focus on serving the Chinese market, while the made-in-Vietnam products will target ASEAN and global markets.
In China, the production expenses, especially labor costs, keep rising and the end of the government’s incentive period is approaching.
The Fuji Xerox Hai Phong plant is located in the Vietnam-Singapore Industrial Park in Hai Phong with an investment of approximately nine billion yen (US$74.18 million), according to Fuji Xerox Vietnam’s website.
The facility is capable of producing two million units of copiers, multifunction devices and printers a year and is set to serve as a key manufacturing hub globally for Fuji Xerox.
No Vietnamese businesses have so far qualified for Fuji Xerox’s strict standards to become its No.1 supplier.
The company has targeted to achieve a 90 percent localization rate, but the current figure is only 50 percent in terms of product values, he added.