Compal entering last chance saloon

The laptop production at Compal’s factory has been sluggish, while its project to develop an industrial park to accommodate the firm’s parts suppliers may have its licence revoked.

The Taiwanese firm started production at Vietnam’s first laptop factory in May 2011, two years later than its initial plan. However, a Vinh Phuc Industrial Park Management Authority source said the factory was manufacturing at a capacity of 2,000-3,000 units per month instead of 500,000 units as designed.

The $500 million factory is located in Ba Thien Industrial Park, also invested by Compal. The factory’s construction started in November 2007 and was initially planned to begin production in the first quarter of 2009. However, its construction was delayed due to the global financial crisis.

“It is likely that Compal has not yet overcome difficulties. There are only 100 workers working at the factory at the moment,” the source told VIR, declining to be named.

Compal is the only laptop manufacturing firm in Vietnam. Its factory was expected to contribute to developing Vietnam’s hi-tech industries and helping attract Compal’s vendors to build satellite factories in the country.

Eight vendors have registered to invest in Vietnam with total investment capital of around $100 million. However, four withdrew and the others have not built production bases as they are facing financial difficulties, according to the source.

Vinh Phuc People’s Committee recently announced that it would revoke the investment certificate of Compal’s industrial park project if the investor could not attract more vendors to the province. “We set a deadline of February 2013,” said the source.

“We understand Compal’s situation but it has been a long time since the project was licenced and no vendors have built factories there. We have to recall and give it to other investors,” he added.