Tatung, a Taiwan-based manufacturer of electric home appliances, IT products, and consumer electronics, is constructing a factory in Vietnam to serve as its global production base for home appliances, according to company general manager WS Lin.
Construction of the factory near HCM City began in early October with an initial investment of US$20 million, stated Lin, adding that the factory is scheduled to begin producing refrigerators, washing machines, air conditioners, and other home appliances in mid-2006.
Sales revenues for the products in 2006 is expected to reach NT$600-700 million (US$18-21 million), Lin pointed out. The factory will expand production to include motors, transformers, and cables in 2007, with annual revenues expected to gradually increase to NT$10.0 billion (US$298 million) in 2010 and NT$33.5 billion (US$1.0 billion) eventually, Lin indicated.
Production will mainly target the Vietnam market as well as all of Asean (Association of Southeast Asian Nations) through the Asean Free Trade Agreement, Lin noted. In addition to Vietnam, Tatung has existing factories in China, the Czech Republic, and Mexico and plans to set up a production base in India, Lin added.