Sanook reported that more than 1,000 employees bid a sad farewell to the Panasonic factory in the Wellgrow Industrial Estate in Bang Pakong, Chachoengsao.
The company is moving production to Vietnam. It was like the end of term for schoolchildren – many signed shirts with goodwill messages for the future and hugged each other.This all played out on a factory Facebook page on Saturday, according to the Sanook.
In July 2020, Japan External Trade Organization (Jetro) has released a list of 30 Japanese firms out of 100 companies registering for the diversify supply chains scheme that will be provided funds to shift their manufacturing from China to some Southeast Asian countries including Vietnam, Philippines, Malaysia, Thailand, and Laos.
According to Jetro, six of the 15 were large firms and the remaining nine were small and medium-sized enterprises (SMEs). Besides, the majority of those moving to Vietnam make medical equipment while the rest produce semiconductors, phone components, air conditioners, or power modules.
The list also features Hoya Corporation manufacturing hardware details also planning to move its production from China to Vietnam and Laos.
It was not clear if the firms will shift completely or in part from China.
According to Jetro’s announcement, the fund ranges from 100 million to 5 billion Japanese yen (US$ 932,000 – US$ 46.6 million), partially offset the costs needed to purchase and install machinery and equipment for production expansion.
In addition to the 30 companies that move production from China to Southeast Asia, the Japanese government also spends at least 57.5 billion yen (US$ 536 million) on 75 companies including privately owned manufacturing companies including face-mask manufacturer Iris Ohyama and Sharp Corporation to move back their production back home.
The subsidies are part of a plan to diversify Japan’s supply chains outside of China that was unveiled in April. The government announced then it has earmarked a 243.5-billion-yen stimulus package to help Japanese companies move production out of China.