Vietnam becomes Manufacture Hub for Fuji Xerox

Mr. Tadahito Yamamoto, President of Fuji Xerox, underscored the fact that Vietnam is one of the company’s key facilities in Asia and the world. He made this proclamation during a recent visit to Fuji Xerox Hai Phong, a northern factory in Vietnam.

Mr. Yamamoto explained that compared to their two plants in Shanghai and Shenzhen in China, Vietnam has more advantages regarding production expenses, especially labor costs. He said that production expense and labor costs are rising in China and the end of the government’s incentive period is approaching. Further, he stressed as a member of ASEAN (Association of Southeast Asian Nations), Vietnam is a giant, fast-growing market which is being satisfied by the manufacturing infrastructure at Hai Phong.

With an investment of approximately 9 billion yen (US$74.18 million), the Fuji Xerox Hai Phong factory is capable of producing 2 million units of copiers, multifunction devices and printers per year. Expanding the Hai Phong plant to serve the ASEAN and global market thus is a top choice for Fuji Xerox, he concluded.

However, Mr. Yamamoto admitted the company is challenged by its bid to increase the localization rate and the short supply of qualified local suppliers. He added, the company has targeted achieving a 90% localization rate, with the current figure at only 50% in terms of product values. To solve the supplier problem, Fuji Xerox plans to open another plant in Hai Phong to reduce the reliance on imported materials, thereby decreasing production expenses.

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