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Microsoft moves manufacturing from
Asia to Vietnam
Presently, many technology businesses are moving manufacturing from China to Vietnam, where production costs are lower. These include Microsoft. After embarking on an important reorganization of Nokia’s unit, Microsoft is currently also migrating to Vietnam. But, the company normally enthusiastic about countries such as Brazil and Mexico.
In Asia, the positions of this middle class have noticeably enhanced in the last few years and wages have cultivated considerably. Currently, in accordance with the Japan exterior Trade Organization (JETRO), the common wage for a member of staff in a Beijing factory is $ 466, while an employee in a similar manufacturing facility in Hanoi receives a typical monthly wage of $ 145. We add that the expense of electrical energy and water in Hanoi can be lower. Vietnam happens to be making every work to attract technology businesses to host manufacturing of hi-tech items. In accordance with federal government programs, in the future, about 30% of services and products manufactured in Vietnam will come from high-tech industries.
On Thursday, Microsoft announced plans to cut 18 thousand. men and women, lots of whom operate in factories in Asia. Stephen Elop, executive vice-president of Microsoft Devices and Service, said in a message to workers that the organization will cut back engineering attempts in Asia, but retain the Nokia affordable team. Elop claims Microsoft intends to locate manufacturing and do advertising in areas where Windows mobile products are well-known.
“We will focus primarily from the work in Hanoi, while maintaining some of the production in Beijing and Dongguan,” said Elop.”We want to move the rest of Microsoft’s unit manufacturing and repair functions to Manaus, Brazil and Reynosa, Mexico, and begin phasing on businesses in Komarom, Hungary.”.