Oki to Set Up Manufacturing Unit in Vietnam
Tokyo, Sept. 20 (Jiji Press)--Japan's Oki Electric Industry Co. <6703> said Friday that it will set up a fully owned unit in Hai Phong, northern Vietnam, for production of key parts for automated teller machines.
The new company, capitalized at some 85.8 million dong, or about 400 million yen, will start operating in October.
The parts produced at the Vietnamese subsidiary will be shipped to factories including one in the eastern Japan prefecture of Gunma and assembled into finished ATMs for supply to the Japanese market.
Oki Electric chose Vietnam as the venue for the new unit in view of tax incentives and low costs there. The number of workers at the subsidiary will be increased to 500 in the future from the initial level of about 100.
Vietnam will be a key overseas production hub for Oki, following China, where it makes ATMs and other equipment, and Thailand, a printer manufacturing base.
[Copyright The Jiji Press, Ltd.]