Southeast Asia is predicted to produce half of the world’s notebook personal computers in 2030, with Vietnam and Thailand tipped to be main manufacturing hubs, Nikkei Asian Review reported, citing a report from a Taiwan-based thinktank.

Vietnam could soon become the world's top laptop producer

As such, the region is expected to displace China as the center of notebook PC production, according to the Market Intelligence & Consulting Institute (MIC). China's rising labor costs and the desire to mitigate overdependence on a single region would drive the shift to Southeast Asia.

The global notebook PC market stood at 160 million units last year. China is responsible for 90% of the output, with most of its manufacturing overseen by Taiwanese companies, while Southeast Asia handles just a slim fraction of the production.

Through interviews of the manufacturers, MIC found that China's share of notebook PC production will be scaled from 90% to 40% by 2030. Major Taiwanese contract manufacturer Wistron, for example, will produce notebook PCs on behalf of US brands in Vietnam.

Among other Taiwanese peers, Compal Electronics is considering building output capacity in Vietnam while Quanta Computer, the world's third-largest contract manufacturer, is expected to produce notebook PCs in Thailand.

Hon Hai Precision Industry, known as Foxconn and the world's biggest contract electronic manufacturer, may launch notebook PC production in Vietnam.

Notebook PC deliveries are expected to climb 6% this year to 170 million units. The coronavirus pandemic has fueled the rise in telecommuting and distance learning, and lifted demand for Chromebooks, which run on Google's operating system.

In August, Nikkei also reported that South Korean tech giant Samsung Electronics will end its personal computer production in China as it looks to shift production to Vietnam to cut costs and remain competitive in the PC business,

Samsung once operated three smartphone factories in China, but the group shut down all Chinese production at the end of 2019. The capacity has been transferred to Samsung's Vietnamese facilities or delegated to contract manufacturers.