VINH PHUC PROVINCE, VIETNAM – Compal Electronics is planning a second plant in Vietnam, with its first reaching full capacity around the second quarter of this year.

The new plant will be operational by the end of 2020, according to reports.

Compal vice chairman Ray Chen reportedly still thinks moving production outside of China is necessary because of issues with labor shortages and production costs rising in China.

The company’s plants in Taiwan are primarily for manufacturing notebooks, but manufacturing of wearables, smartphones, smart speakers and network communication devices is gradually being shifted to sites outside of China.