Mitac International yesterday broke ground on 134,600 square meters of land for construction of a large-scale manufacturing site in Bac Ninh Province, Vietnam. The Vietnam plant will be the company's third production base overseas to implement its vertical integration plan, according to company president and vice chairman Francis Tsai.

Mitac has two large-scale production bases in Shunde, Guangdong Province and Kunshan, Jiangsu Province (China). With US$15 million in total investment, Mitac is scheduled to kick off trial production at the Vietnam plant in the latter half 2006, Tsai stated. Production at the new plant will initially focus on printers, digital still cameras (DSCs), DVD players and other consumer electronics products and then extend to handset chassis and related components in the future, Tsai noted.

Vietnam's competitive edge is in its low-cost human resources and a competent technical labor force, said Tsai. In addition, the Vietnamese government has formulated incentive measures to encourage IT players to place manufacturing facilities in the country, Tsai noted.

Besides China, Vietnam could be another ideal manufacturing location for Taiwan IT makers, who are feeling the need to expand business scales worldwide and raise competitiveness, according to industry sources.

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