No incentive to stay
The Chinese Government plans to cut incentives to foreign investors has meant that laptop maker Compal is expanding its operations in Vietnam.
Compal Vice President, Lu Ching-hsiung, denied a newspaper report which said Compal plans to shift its notebook computer production entirely from China. However, he confirmed the company will set up a new production base in Vietnam. Most of Compal's notebook computer production is in Kunshan, near Shanghai where it has 20,000 workers in its three notebook computer plants.
Compal's Vietnam plant is scheduled to begin trial production in the fourth quarter of 2008. By the end of 2009, the Vietnam plant is scheduled to assemble one million notebook computers each month.
