Japanese camera lens manufacturer Tenglong Co., Ltd. (Tamron) has announced plans to establish a new production base in Hanoi, Vietnam. The new factory, which will have a land area of approximately 25,000 square meters, will be used to manufacture camera lenses and other related equipment, with an investment of around 4 billion yen (approximately 209 million yuan).
Expanding Production Capabilities
Tamron, which already has production bases in Aomori Prefecture, Japan, and Foshan, China, stated that the new factory in Vietnam will be established to strengthen the company's overall production system in order to cope with medium and long-term business expansion. The company also aims to enhance a stable supply system, including supply chain and cost competitiveness.
Construction for the new factory is set to begin in October 2023, with production scheduled to begin in January 2025. This timeline aligns with Tamron's financial performance report for the fiscal year 2022, set to be released on February 8.
A Growing Market
The camera and photography equipment market is growing globally, with a projected compound annual growth rate of 6.9% from 2020 to 2027. This expansion is driven by the increasing popularity of photography as a hobby, as well as the growing use of cameras in industries such as surveillance and security.
Tamron's decision to build a new factory in Vietnam is in line with the trend of companies shifting production to Southeast Asia in order to take advantage of lower labor costs and a growing market. Vietnam in particular has seen an increase in foreign direct investment in recent years, with the government actively promoting investment in the manufacturing sector.
Tamron's new factory in Vietnam is a strategic move that will allow the company to expand its production capabilities and enhance its supply chain and cost competitiveness. The factory is set to begin production in January 2025, aligning with the company's financial performance report for the fiscal year 2022. With the camera and photography equipment market projected to continue growing, Tamron's new factory in Vietnam is well-positioned to take advantage of this growth.
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