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Electronics Production | June 09, 2008

Jabil Circuit sees opportunities in Vietnam

The EMS-provider has opened its Vietnam based facility just over a year ago and has so far avoided many pitfalls, reports tampabay.com.
The company's facility, located in a high-tech park outside Ho Chi Minh City, employs around 650 staff on 70000 sqm. The company produces inkjet printers for HP. Vietnam was the next logical stop for the EMS-provider in Asia in its search for new low-cost production opportunities, reports the newspaper. The General Director of the plant is cited by saying that 30 – 40% cost savings could be achieved, compared to China.

As the Vietnamese infrastructure does not develop at the same pace as the rest of the country, many companies - Jabil included - face problems in procuring components. Moreover, the electronics industry also falls behind. Therefore, Jabil still has to import around 80% of its components from China and other South-Asian companies, which, in consequence, still leads to production delays.

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