Taiwan's Quanta Computer mulls Vietnam plant
TAIPEI, Jan 2 (Reuters) - Taiwan's Quanta Computer (2382.TW), the world's top contract laptop PC maker, said on Wednesday it was studying a plan to build a plant in Vietnam or in other emerging markets amid rising labour costs in China.
"We are doing feasability studies in Vietnam and in other countries which we think may be good investment opportunities," said a Quanta spokeswoman.
However, she added that nothing had been finalised and declined to give a specific timetable or investment amount for any of the potential projects.
Quanta, which supplies top U.S. brands such as Apple Inc (AAPL.O), Dell Inc and Hewlett-Packard Co <HPQ.N, competes with local rival Compal Electronics (2324.TW), which had said it is building facilities in Vietnam and plans to invest $500 million in the country's northern region.
Taiwan-based Foxconn Technology (2354.TW), a firm under the Hon Hai Group, has also signed an agreement to invest $1.1 billion in a plant in Vietnam to make cellphones, as Asian firms seek lower-cost production centres to defend profit margins.
Numerous Taiwan manufacturing companies, which have been producing the likes of computers and handsets in China for major Western brands, have begun to look elsewhere, as labour costs in China have steadily increased, and are expected to rise a further 20-25 percent this year, said analysts.
At 0228 GMT, shares of Quanta had declined 0.33 percent, underperforming the benchmark TAEIX which fell 0.25 percent. Compal Electronics dropped 1.97 percent while Foxconn Technology advanced 1.14 percent. (US$1=T$32.4) (Reporting by Sheena Lee; Editing by Anne Marie Roantree)
