Asia Express
Qisda Accelerate Investment in Vietnam Amid Tariff Pressures
December 10, 2024

Amid U.S. President Donald Trump's proposed tariff hikes on imports from China, Mexico, and Canada, Qisda Group is fast-tracking its manufacturing expansion in Vietnam, as reported by Commercial Daily News on December 9. The company plans to boost its monitor production capacity in Vietnam to 500,000–600,000 units per month next year, with half of its total output originating there. High tariffs have already driven Qisda to relocate 100% of its networking product manufacturing for the U.S. market to Vietnam. The group is also evaluating U.S.-based assembly options, leveraging facilities in California to address potential policy shifts. Subsidiaries such as DFI Inc. and Data Image are similarly scaling up their Vietnamese operations, aiming for full deployment by 2025.

Similarly, Taiwan's networking equipment industry has proactively relocated manufacturing operations outside of China. Leading companies such as Wistron NeWeb, Accton, Zyxel, and Arcadyan have established production facilities in Vietnam, the Philippines, Indonesia, and Mexico to align with U.S. “China-free” supply chain requirements. According to the Taipei-based Market Intelligence & Consulting Institute (MIC), U.S. imports from China steadily declined between 2018 and 2023. MIC added that with Taiwanese firms significantly reducing their reliance on Chinese manufacturing, the anticipated impact of a 60% tariff on Chinese goods is expected to be minimal. These strategic adjustments underscore Taiwan's resilience and adaptability in navigating global trade dynamics.