Japan-based Foster Electric, a manufacturer of speakers and audio equipment, will establish a joint venture in Vietnam with China-based Hengdian DMEGC Magnetics, a magnetic component maker, for producing speaker components, according to a report by Vietnam Investment Review (VIR).
The JV's factory will be at the An Phat 1 high-tech industrial park in northern Vietnam and will procure magnetic materials locally to boost its products' competitiveness in costs, said the report.
Through the investment Foster is eying to reduce the risk of placing all the eggs in one basket as it is currently procuring most of its magnetic materials from China, said VIR.
DMEGC Magnetics will have an 80.1% stake in the JV and Foster 19.9%.
