In the context of concerns about prolonged US-China trade war and favorable export goods to the US market, Japanese electronics firm Sharp of Japan announced on August 1 to build a new factory in Vietnam.
According to VNA correspondent in Tokyo, Sharp’s new factory will be built on the outskirts of Ho Chi Minh City and is expected to start operation in fiscal year 2020, investment capital is not publicized by this group. However, according to Nikkei, Sharp will establish a joint venture subsidiary in Vietnam with a capital of 2.7 billion yen (equivalent to 25 million USD) in February 2020. Sharp Vice President Katsuaki Nomura said the goal of the new factory is to deal with the US trade war – China will likely last long.
Sharp’s new factory in Vietnam will produce car-mounted monitors to export to the US market and air purifiers sold in Vietnam. In addition to the new factory, Sharp is considering moving a subsidiary specializing in computer manufacturing with components made and assembled mostly in Hangzhou (China) to Vietnam.
Sharp data released on August 1 showed that its consolidated net profit from April to June 2019 fell by 35% and revenue fell by 4%. This is the first time Sharp’s revenue and profit has decreased since it was under the financial support of Honhai Group (Hong Hai), Taiwan (China) – Foxconn’s parent company since August 2016.
The drop in television sales in China and Apple’s iPhone phone, which Sharp is involved in supplying components and slow consumption, have affected the profit and revenue of the electronics company in the past. However, since the third quarter, Sharp will restore sales to Apple, as well as the home appliance business with stable growth, so the forecast ends the fiscal year in March / 2020, Sharp’s revenue and profit will not be much reduced this year.