TAIPEI, Taiwan, Feb. 16, 2011 /PRNewswire-Asia/—MiTAC Precision Technology Corporation, an international supplier of specialized plastic and metal mechanical parts, announced today that it is planning to expand the production scale of its plants in Vietnam over the short term, increase the supply rate in this plant area, and thus raise MiTAC Precision’s competiveness through lower-costing production in Vietnam.
MiTAC Precision said that, with labor costs in China having risen greatly over the recent years and the labor shortage in the coastal regions becoming increasingly serious, the quality of production aspects has been affected.
Compared to China and neighboring countries, Vietnam has relatively lower manufacturing costs, cheaper electricity and a stable labor supply, with labor wages being merely half of that in China. In contrast to the still appreciating reminbi, the depreciation of the Vietnamese dong is more favorable for the export trade and has already attracted many foreign investors to set up plants over there or divert purchase orders to Vietnam.
MiTAC Precision’s Vietnamese plants were established in Hanoi, Vietnam in 2006, they provide services for plastic and metal mechanical parts, and their main customers are well-known international printer brands; after the expansion of the production line in the future, they will begin to supply mechanical parts for consumer electronic products such as notebook computers, game consoles and cameras.
And Waffer Precision Metallic Technologies (Changshu) Co., Ltd (referred to as Waffer Changshu), a company under its banner that specializes in the production of high precision automotive parts , had also acquired land in Vietnam last year for the building of a second plant.
The plant is expected to be completed and opened in the middle of this year, and will begin production to support Waffer Precision Changshu’s lack of production capacity at its Chinese plants and concurrently bring in more new customer resources and orders.