Vietnam Becomes a Key Destination for HP's PC Production Diversification

Vietnam Becomes a Key Destination for HP's PC Production Diversification

HP is collaborating with suppliers to relocate laptop manufacturing operations to Thailand, Mexico, and Vietnam, indicating the growing prominence of Vietnam as an appealing investment hub for computer manufacturers diversifying beyond China.

This strategic move represents HP’s first major initiative to expand its PC production activities beyond China, aiming to reduce its dependency on a single manufacturing base. As the second-largest PC manufacturer globally in terms of shipment volume, trailing China’s Lenovo, HP intends to transfer a portion of its commercial laptop production to Mexico, while shifting some consumer laptop manufacturing to Thailand. Moreover, HP is exploring Vietnam as a potential destination for relocating laptop production, with plans scheduled to commence next year, as per sources from HP’s suppliers. These suppliers estimate that HP’s production output outside of China for this year will range between 2-5 million units, an impressive figure considering HP delivered 55.2 million PCs worldwide last year.

Vietnam, gradually emerging as an attractive investment destination for prominent global companies, has captured HP’s attention as well. By expanding its operations to Vietnam and Thailand, HP aims to contribute to the establishment of a robust PC supply chain ecosystem in Southeast Asia, providing an appealing alternative for computer manufacturers seeking to diversify their production beyond China. This decision by HP follows a proactive move by its American competitor, Dell, which launched an ambitious campaign to eliminate Made-in-China chips from its product lines.

Dell Technologies, having diversified its supply chain earlier than HP, aims to produce at least 20 percent of its laptops in Vietnam this year. It is projected that Dell will achieve complete independence from Chinese chips at the component level by the end of 2024. Similarly, Apple has initiated MacBook production in Vietnam this year, marking a significant milestone as it diversifies its manufacturing away from China.

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