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Vietnam tipped to become world’s leading laptop producer

September 29, 2020 | 14:05

In the latest update about the laptop market share, Nikkei Asian Review reported that Vietnam and Thailand are expected to displace China as the center of notebook PC production, soon to become Southeast Asia’s main manufacturing hub.

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Vietnam and thailand will become the leading laptop producers in region
Vietnam and Thailand will become the leading laptop producers in the region (Photo: VOV)

The Japan-based news outlet has quoted the Market Intelligence & Consulting Institute (MIC) as saying that Southeast Asia’s laptop production will account for half of the world by 2030, with Vietnam and Thailand anticipated to be the region’s main manufacturing hub.

The rising labor costs in China and the global desire to mitigate overdependence on a single region, are expected factors in driving the shift to Southeast Asia.

Earlier in 2019, the global notebook PC market stands at 160 million units, of which 90% came from China. The majority of its manufactured products were overseen by Taiwanese companies, while Southeast Asia handled just a slim fraction of production.

Various interviews with manufacturers reveal China’s share of notebook PC production is set to be scaled down from 90% to 40% by 2030, as reported by Nikkei Asian Review. Most notably, Wistron, a major Taiwanese contract manufacturer, will produce notebook PCs on behalf of brands from the United States in Vietnam.

Among other Taiwanese peers, the article reveals that Compal Electronics is considering developing its output capacity in Vietnam. Elsewhere, Quanta Computer, the world's third-largest contract manufacturer, is expected to shift production of their notebook PCs to Thailand.

Meanwhile, Hon Hai Precision Industry, also known as Foxconn, the world’s largest contract electronic manufacturer, may produce their notebook PCs in Vietnam.

The Nikkei article also notes that this year, notebook PC deliveries are expected to climb by 6% to 170 million units.

According to the Japanese newspaper, the novel coronavirus (COVID-19) pandemic has fueled a rise in telecommuting and distance learning, while increasing demand for Chromebooks, which run using Google’s operating system.

China’s Lenovo Group, HP in the US, and Taiwan’s Asustek Computer have released their own Chromebooks, which sell for a few hundred of US dollars. Most of those models are produced on contract by Taiwanese firms,” says Nikkei.

2513 latop
(Photo: VieTrader)

In August, Nikkei also reported that South Korean tech giant Samsung Electronics will end its personal computer production in China as it looks to shift production to Vietnam to cut costs and remain competitive in the PC business,

Samsung once operated three smartphone factories in China, but the group shut down all Chinese production at the end of 2019. The capacity has been transferred to Samsung’s Vietnamese facilities or delegated to contract manufacturers.

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