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Outsourcing China

LPH

Flight Director
Flight Instructor
Labor in China costs far less than the equivalent worker in the U.S. but what happens when labor costs rise in China? Companies move to Vietnam, where the cost is half.

DigiTimes published a short statement on Compal's threat to move factories to Vietnam. Actually, it isn't a threat because the company started opening factories two years ago.

This trend is growing and will put pricing pressures on China.
 

LPH

Flight Director
Flight Instructor
From Compal's website

Compal's manufacturing center is located in Kunshan, mainland China, there are four laptops and two video products manufacturing plant, established in Vietnam in 2007 is the second overseas production base in 2008 due to favorable demand growth in emerging markets, respectively, in Poland the establishment of NB NB maintenance center and set up production bases in Brazil; 2010 and 2011, with customer demand west, respectively, to set up factories in Chengdu and Chongqing; to achieve high productivity, high quality target, Compal efficient use of production operations, a sound manufacturing system, with sophisticated equipment, which enables high production yield of the target has been reached.
 
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