Compal and Pegatron are reportedly expanding production in Vietnam, while Vietnam is poised to increase minimum wage amid rising inflation.
Compal to expand production in Vietnam to cater increasing global demand
According to the Saigon Times, Taiwan-based consumer electronics manufacturer Compal is expanding local production capacity to meet surging demand for smart devices. Following an expansion in Vinh Phun Province in Vietnam last year, the company said it is expanding operations in Quang Ninh and Nghe An.
Vietnam seals minimum wage hike by 6% next month
According to Nikkei Asia, Vietnam is increasing minimum wage by an average of 6% this July despite objection from businesses. The prime minister of the Southeast Asian country approved the wage hike last Sunday, as consumer price index rose 2.9% in May. This will be the first wage hike in two and a half years.
Pegatron to shift production partially from China to Vietnam
According to the Vietnam Insider, Taiwan-based electronics manufacturer Pegatron said it plans to shift part of production from China to Vietnam. In a shareholder meeting last week, the company’s CEO cited China’s ongoing pandemic restrictions as one of the factors behind the shift.
Malaysia smartphone market shrinks by 28.8% in 1Q22
According to IDC, Malaysia’s smartphone shipments declined by nearly 30% on-year in the first quarter of 2022 due to shortages of components for low-end 4G models and rising inflation. The research firm expects to see an annual decline of 5% for the year in Malaysia citing continuous supply challenges.
VinFast to open 25 stores in Germany
According to electrek, Vietnam-based EV maker VinFast has plans to expand to Europe by opening at least 50 stores across the continent. The carmaker is currently producing its vehicles in Vietnam but planning to set up production in the US. It revealed that at least 25 of the stores will be located in Germany, 20 in France, and five in the Netherlands.