A range of electronics companies, including Foxconn, are moving manufacturing to Vietnam from China for a variety of reasons, including COVID-19 disruptions. K+N’s Q4 performance was similar to its peers, while COVID-19 disruptions in China are passing.

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Daily Datum: $15 million
drag to Matson’s earnings caused by COVID-19 related disruptions

NEED TO KNOW

Foxconn, COVID-19 drive Vietnam’s electronics super-power status
Google’s Pixel and Microsoft’s Surface production will be partly moved to Vietnam from China in Q2 according to press reports. That’s a response to the U.S.-China trade war, disruptions caused by COVID-19 coronavirus and lower labor costs.

Telecoms has come to account for 20.7% of Vietnamese exports in 2019 from 10.9% in 2015, while apparel and furniture fell to 41.5% from 49.5%.

Foxconn has been an early adopter of telecoms production in Vietnam for shipment to the U.S. market. Shipments linked to Foxconn represented 65.4% of U.S. seaborne imports of telecoms and computer equipment from Vietnam in 2019. That’s been led by shipments for Netgear, Arris Tech and Ubee Interactive.

(Panjiva Research – Tech Hardware)