Sharp plans Vietnam factory to sidestep trade war

[Viet]

02, 2019 04:51 JST

Sharp is re-configuring its global production operations to lessen the impact of the U.S.-China trade war. © Reuters


OSAKA -- Sharp said Thursday it has scrapped plans to produce displays for the American market in China and will instead build a new plant in Vietnam in order to avoid new tariffs being imposed in the long-simmering trade dispute between Washington and Beijing.

The Vietnamese factory will assemble automotive liquid crystal displays to be sold in the U.S. Some personal computer production of subsidiary Dynabook may shift to the new facility as well.

Sharp made the announcement shortly after U.S.-China trade talks in Shanghai this week appeared to yield little progress. "We don't know what new developments may come, or when," Executive Vice President Katsuaki Nomura told reporters Thursday.

Later the same day, U.S. President Donald Trump announced a new round of tariffs on Chinese imports beginning Sept. 1. LCD imports will be on the goods affected.

Sharp did not disclose the investment amount to build the factory, set to begin operating in fiscal 2020 near Ho Chi Minh City.

Along with the U.S.-bound car display screens, which will incorporate LCD panels made in Japan, the plant will make air purifiers and other electronics for sale in Vietnam.

China accounts for nearly all of Dynabook's PC output at present, chiefly at facilities in Hangzhou. About 10% of this is shipped to the U.S. -- work that may shift to Vietnam.

Sharp also reported Thursday a net profit of 12.5 billion yen ($115 million) for the April-June quarter, down 35% on the year. Sales sank 4% to 515 billion yen. It was the first simultaneous drop in sales and profit for that quarter since Sharp's August 2016 purchase by Taiwan's Hon Hai Precision Industry, better known as Foxconn.

Sharp, which supplies parts for Apple's iPhones, has suffered from the slowdown in sales for the U.S. smartphone juggernaut, as well as from slumping TV sales in markets such as China. But the company's business with Apple appears headed for a recovery this quarter, and home appliance sales likewise look strong, leading Sharp to maintain its outlook for the year through March 2020.

https://asia.nikkei.com/Business/Companies/Sharp-plans-Vietnam-factory-to-sidestep-trade-war

 

[Viet]

Oh great. Japanese companies are smart and quick. It seems it takes only one year to set up electronics and computers factories in Vietnam.

Moving from making shoes is a good thing.

 

[Indos]

Indonesia, Vietnam, and Philippine economy are still growing strong amid trade war. Among the biggest economies in South East Asia, these three nations economies are still the strongest in term of growth. While in the mean time, Singapore economies is the one with the most vulnerable with only 0,1 % growth in first quarter and possible recession in 2020. Malaysian economy are also dropping into 4,5 % this first quarter after growing strongly in 2017 with 5,6 percent. Thailand as the second biggest economy in South East Asia grow only 2,8 percent for the first quarter.

 

[8888888888888]

China accounts for nearly all of Dynabook's PC output at present, chiefly at facilities in Hangzhou. About 10% of this is shipped to the U.S. -- work that may shift to Vietnam.

Mostly for the USA market, the rest of the world is still in China.

 

[Viva_Viet]

Mostly for the USA market, the rest of the world is still in China.

Just a matter of time before EU stop buying CN products. EU justbsigned FTA wt VN, products manufacturing in VN exporting to EU could be cheaper than in CN tks to Zero tax

 

[Viet]

Indonesia, Vietnam, and Philippine economy are still growing strong amid trade war. Among the biggest economies in South East Asia, these three nations economies are still the strongest in term of growth. While in the mean time, Singapore economies is the one with the most vulnerable with only 0,1 % growth in first quarter and possible recession in 2020. Malaysian economy are also dropping into 4,5 % this first quarter after growing strongly in 2017 with 5,6 percent. Thailand as the second biggest economy in South East Asia grow only 2,8 percent for the first quarter.

Manufacturing expands in Vietnam and Philippines, while the rest from China to Singapore are contracting and shrinking. But ok you are right, overall the economies are growing thanks to domestic consumptions.

Just a matter of time before EU stop buying CN products. EU justbsigned FTA wt VN, products manufacturing in VN exporting to EU could be cheaper than in CN tks to Zero tax

EU and US can buy everything from Vietnam. We can make cheap plastic toys too no need to buy from China.

 

[Indos]

Manufacturing expands in Vietnam and Philippines, while the rest from China to Singapore are contracting and shrinking. But ok you are right, overall the economies are growing thanks to domestic consumptions.

Indonesia manufacturing out put is also raising and grew 4,07 percent in 2018. And manufacturing output is still increasing during the first quarter of 2019. Those data are collected amid trade war, but it is true that our trade data show a decrease on both export and import.

https://www.indonesia-investments.c...anufacturing-activity-jumps-in-march/item9122

Vietnam and Philippine currently are a head of Indonesia in term of economic growth but I think with so many reform on regulation including lowering interest rate and reform on labor law plus massive infrastructure project going on since 2014, Indonesia hopefully can once again get 6 percent economic growth after 2024.

If Trump win again in the next US election and continue its trade policy, it will be hard for Singapore, Malaysia, and Thailand since those countries are heavily relied on trade. Vietnam is also rely heavily on trade but Vietnam is in better condition due to high growth of foreign direct investment it get.

 

[Nike]

Indonesia manufacturing out put is also raising and grew 4,07 percent in 2018. And manufacturing output is still increasing during the first quarter of 2019. Those data are collected amid trade war, but it is true that our trade data show a decrease on both export and import.

https://www.indonesia-investments.c...anufacturing-activity-jumps-in-march/item9122

Vietnam and Philippine currently are a head of Indonesia in term of economic growth but I think with so many reform on regulation including lowering interest rate and reform on labor law plus massive infrastructure project going on since 2014, Indonesia hopefully can once again get 6 percent economic growth after 2024.

If Trump win again in the next US election and continue its trade policy, it will be hard for Singapore, Malaysia, and Thailand since those countries are heavily relied on trade. Vietnam is also rely heavily on trade but Vietnam is in better condition due to high growth of foreign direct investment it get.

Low base effect in short, coupled with their position near China made their trade volume with China is quite large

 

[Kai Liu]

EU and US can buy everything from Vietnam. We can make cheap plastic toys too no need to buy from China.

EU and US can buy everything from vn?? Except slave labour, what else can you provide??? And do you think EU and US will not buy from China and give up the world's largest market and let vn to thrive??? You think too much... In their eyes, vn is nothing but a tiny cockroach which can be used to pollute our kitchen, while China's immense purchasing power is feeding those EU/US companies, they dare not to mess up with but bargain with us to get better deals...
Just check how many cars GM has sold in China in one year: that is over 4 million, accounting for almost half of GM's total sales, that is more than 20 years of auto sales in your pathetic country...
https://media.gm.com/media/cn/en/gm...ent/Pages/news/cn/en/2018/Jan/0104_sales.html
EU/US Luxury car companies sell more luxury cars in one day here than they can do in one year in your pathetic country...
http://autonews.gasgoo.com/china_news/70015635.html
Such companies like VW, Apple, Boeing, Airbus, Nike, Adidas, HP ... the list will go forever...

You are such a dumbass as always...

 

[Viet]

Low base effect in short, coupled with their position near China made their trade volume with China is quite large

Being too China has benefits but can be dangerous. You should be happy, Jakarta is far away from China border. PLA tanks from Nanjing can reach Hanoi in 7 hours. We don’t know when they run amok. People in Vietnam are concerned because the exodus of foreign companies out of China is accelerating.

EU and US can buy everything from vn?? Except slave labour, what else can you provide??? And do you think EU and US will not buy from China and give up the world's largest market and let vn to thrive??? You think too much... In their eyes, vn is nothing but a tiny cockroach which can be used to pollute our kitchen, while China's immense purchasing power is feeding those EU/US companies, they dare not to mess up with but bargain with us to get better deals...
Just check how many cars GM has sold in China in one year: that is over 4 million, accounting for almost half of GM's total sales, that is more than 20 years of auto sales in your pathetic country...
https://media.gm.com/media/cn/en/gm...ent/Pages/news/cn/en/2018/Jan/0104_sales.html
EU/US Luxury car companies sell more luxury cars in one day here than they can do in one year in your pathetic country...
http://autonews.gasgoo.com/china_news/70015635.html
Such companies like VW, Apple, Boeing, Airbus, Nike, Adidas, HP ... the list will go forever...

You are such a dumbass as always...

You failed to understand. The West can keep you as market while develops Vietnam into a production base. No problem, you can keep buying expensive western cars.

The Germans are very happy when you buy Mercedes, Audi, BMW, Porsche.

I expect our carmaker Vinfast will develop a sport car. Hopefully a clone from Porsche.

 

[Viva_Viet]

You failed to understand. The West can keep you as market while develops Vietnam into a production base. No problem, you can keep buying expensive western cars.

The Germans are very happy when you buy Mercedes, Audi, BMW, Porsche.

I expect our carmaker Vinfast will develop a sport car. Hopefully a clone from Porsche.

True, its good when CNese keep buying BMW,Audi etc but its very stupid if thinking EU will keep buying products manufacturing in CN cos VN ones could be cheaper tks to Zero tariff in VN-EU FTA while EU never sign FTA wt CN.

 

[Viet]

True, its good when CNese keep buying BMW,Audi etc but its very stupid if thinking EU will keep buying products manufacturing in CN cos VN ones could be cheaper tks to Zero tariff in VN-EU FTA while EU never sign FTA wt CN.

It’s weird to brag how many BMWs they buy. Let’s them buy multiple millions BMWs. Anyway, another Japanese company says it moves to Vietnam. It’s like Christmas!


Kyocera shifts China production to Vietnam to avoid Trump tariffs
Japanese manufacturer will move copier output by March

SHUNTARO FUKUTOMI, Nikkei staff writer AUGUST 03, 2019 01:12 JST

Kyocera plans to relocate production of U.S.-bound printers from China to this plant in Vietnam.


OSAKA -- Kyocera will relocate production of U.S.-bound copiers and multifunction printers to Vietnam from China, the Japanese manufacturer said Friday, in a move designed to avoid U.S. tariffs.

"We will switch production between Chinese facilities and Vietnamese facilities," Kyocera President Hideo Tanimoto told reporters. All-in-one printers made in China are mainly shipped to the U.S., while those built in Vietnam are usually destined for Europe.

The decision comes after months of consideration, and was announced after U.S. President Donald Trump tweeted his intention to impose a fourth round of tariffs against China. Multifunction printers are included in the $300 billion worth of goods that will be hit with 10% duty increase on Sept. 1.

The relocation will be carried out in the current fiscal year through March 2020, but it will take time to readjust material procurement and other processes. The cost of the move could run into the billions of yen (1 billion yen equals $9.2 million).

Kyocera's document solutions business took in about 375 billion yen in revenue during the previous fiscal year, with approximately 20% coming from the U.S. When asked about the effect of the trade war on business, Tanimoto expressed deep concerns over the Chinese economy.

"The effect of China's economic slowdown will be bigger than that from the additional tariffs," he said. "If the fourth round of sanctions against China are implemented, the Chinese economy will be impacted."

 

[zectech]

I expect our carmaker Vinfast will develop a sport car. Hopefully a clone from Porsche.

Not a clone, or you will share the fate of Lepin.

 

[Kai Liu]

You failed to understand. The West can keep you as market while develops Vietnam into a production base. No problem, you can keep buying expensive western cars.

The Germans are very happy when you buy Mercedes, Audi, BMW, Porsche.

I expect our carmaker Vinfast will develop a sport car. Hopefully a clone from Porsche.

It is you who failed to understand... Do you think we will still give our market (e.g. cars, etc.) to them if they use vn as a production base (despite you can hardly even take 1% of our manufacturing capability...)??? Even a moron can understand this...
Take Samsung as an example... They were literally driven out of Chinese market while our domestic brands take the pie and thrive...

 

[Crusher]

The problem is China is playing the "wait game" in the trade deal negotiations with the US because China want to show itself strong in front of US and the rest of the world, so it is ready to take some economic hit and loss of revenues due to declining exports to US amid the tariffs imposed on Chinese sourced imports into US.

But the companies are altogether a different kind of entity, they cannot "afford" to lose their revenues in the US market or become stubborn to keep taking losses to satisfy their "ego" or "stubbornness" as it is with the Chinese government. Companies are just reinventing themselves to avoid US tariffs for their exports into US sourced from Asia, these companies are answerable to their "shareholders" who won't let them keep taking losses by keeping their production lines within China.

It is just a matter of months that most companies whose revenue is considerably dependent on their exports to US will move their manufacturing lines to other countries of Asia like what Sharp company is doing now. In capitalist system companies are answerable to their shareholders only, they are not supposed to pamper the "ideologies", "egos" or "stubbornness" of the governments of the countries (in this case china) where they functions for any prolonged periods of time.