Making news

US, Japanese manufacturers shifting production from China to ASEAN

ASEAN nations, including Vietnam, are emerging as a destination of choice for many US and Japanese manufacturers who are looking to shift their production bases away from China following the US-China trade war and the COVID-19 pandemic.

According to a Nikkei Asian Review report in February, Google and Microsoft are shifting some of their production bases outside of China to Vietnam and Thailand.

The two US tech giants are looking to Vietnam to manufacture new phones, personal computers, and other devices.
Google is set to partly produce its Pixel 4A and Pixel 5A smart phones in Vietnam in May and the second half of this year.

It will also start to have its Nest Mini smart speakers produced in Thailand later this year.

Microsoft is scheduled to begin the production of desktops and Surface laptops in Vietnam in the second quarter of this year.

Meanwhile, Japan has earmarked 2.2 billion USD of its economic stimulus package to help manufacturers move out of China, returning to Japan or heading to India or ASEAN nations.

The move aims to diversify its investment flows while reducing its reliance on China as a manufacturing base.

According to the Malaysian Investment Development Authority, the country received direct investment of over 8.9 billion USD from Japan between January and September last year.

Apple, Nintendo, HP, and Dell have also put forth plans to move out of China, possibly into India./