Aid pledged for shift of Nokia smartphone production to Vietnam

The Ministry of Science and Technology has pledged favorable conditions for relocation of Nokia smartphone production lines from China, Hungary and Mexico to Vietnam to ease concerns that Microsoft might face a range of barriers in the relocation process.

Do Hoai Nam, chief of the Department for Technology Appraisal, Examination and Assessment under the ministry, reiterated support for Microsoft more than one week after news about Microsoft’s plans to move all or part of Nokia smartphone production lines from China, Hungary and Mexico to Vietnam in a move to restructure its business strategy.

According to Bac Ninh Province’s authorities, the firm has sent a document to related agencies in Vietnam announcing that it is going to shut down all or part of its factories in Komarom (Hungary), Beijing and Dongguan (China) and Reynosa (Mexico).

The ministry’s Circular 20/2014, which will take effect next Monday, stipulates that used machines and equipment can be imported into Vietnam if they have been used for less than five years or their quality is equivalent to 80% of new ones to ensure product quality, safety, energy efficiency and environmental protection.

However, Article 14 of Section 7 in the circular specifies that in case certain second-hand machines and equipment fail to meet the requirements for time usage but they will be considered for import into this country if they are upgraded in line with relevant criteria in this country.

Nam said the ministry has worked with Microsoft over relocating Nokia smartphone production lines to Vietnam and asked the group to submit detailed documents about the machines and equipment.

As planned, the Nokia factory in the northern province of Bac Ninh will be expanded to facilitate production of smartphones running on Windows operating system such as Lumia 630 and 530 by the end of this month. The factory will turn out other types of smartphone at the end of this year.

SGT/VNN

Nokia smartphone
 
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