According to local Vietnamese media outlet The Investor, Taiwan's leading fitness equipment manufacturer, Johnson Health Tech Co., Ltd., is planning to invest $100 million in establishing the world’s largest fitness equipment manufacturing and assembly center in northern Vietnam.
This new production facility will be located in the Thuan Thanh I Industrial Park in Bac Ninh Province, covering an area of 20 hectares. Construction is expected to begin in the first quarter of 2025, with operations slated to commence the following year. Johnson’s CEO, Jason Lo, stated that the new factory will focus on producing control panels, motors, running belts, and other related components. Once completed, the facility is expected to create 2,000 to 3,000 jobs and generate an annual revenue of $120 million.
Johnson manufacturers in Vietnam
This will be Johnson’s second manufacturing base in Vietnam. The company had already invested $50 million in 2019 to establish a 10-hectare facility in the Thuan Thanh II Industrial Park, also in Bac Ninh Province, which has since reached an annual revenue of $60 million. With the new factory coming online, Johnson plans to transfer some of its production operations from mainland of China, Taiwan, and other countries to Vietnam, aiming to further optimize its global supply chain.
On August 12, 2024, Bac Ninh Province Chairman Vuong Quoc Tuan met with Jason Lo and his team. During the meeting, Lo sought support from the local government for the construction and operation of the new plant. Vuong Quoc Tuan assured that the provincial government would provide the best possible business environment for Johnson and other investors, advising close cooperation with the provincial Industrial Zones Authority to complete the necessary procedures and obtain the investment registration certificate as soon as possible.
Although Bac Ninh is the smallest province in Vietnam by area, it has become the leading destination for foreign direct investment (FDI) in the country, attracting $3.2 billion in the first seven months of 2024. The province currently hosts 16 industrial parks, 12 of which are operational, with an occupancy rate exceeding 60%. Taiwanese investors have committed over $700 million across 63 projects in the province.
Industry insiders have also revealed that in recent years, several major chinese fitness equipment manufacturers have been exploring overseas markets, including Vietnam, Thailand, Malaysia, and Mexico, to assess the feasibility of establishing production bases outside China.
By Roger Yao (cs01@fitqs.com) from Shanghai, China
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