Panasonic to double wiring device production in Vietnam plant

The Japanese electronics manufacturer will build a new factory next to the existing facility now operated by Panasonic Eco Solutions Vietnam Co in the southern province of Binh Duong, about 40 km (25 miles) north of Ho Chi Minh City, the newspaper said.

The expansion is estimated to cost one billion yen, or $9 million.

Company officials could not immediately be reached for comment.

The new 6,000 square-meter plant is scheduled to come into operation by late October, doubling Panasonic Vietnam’s capacity by 2020, citing a company directive on the expansion.

The electronic giant has also planned to acquire an area covering about 18,000 square meters adjacent to its existing factory premises in preparation for future expansion, said the newspaper.

Output from the new factory would go to the domestic market as well as other Southeast Asian countries.

The Binh Duong plant began production in late 2014. Besides, Panasonic has four other factories and one research and development center in Vietnam.

The Japan External Trade Organization’s 2016 business confidence survey showed that nearly 70 percent of Japanese companies plan to expand their Vietnam operations, up from 64 percent in the previous year.

As of February 2017, Japan is Vietnam’s second largest foreign investor, with projects totaling $42.49 billion, based on data by Vietnam’s government.