The US internet giant Google will transfer the production of its Pixel smartphones from China to Vietnam early next year, the business daily Nikkei reported on Wednesday.
The decision comes as labor costs rise in China and tariffs soar because of persistent trade tensions between Beijing and Washington.
→ Read also: A former Google executive charged for sharing secrets with Uber
The US giant plans to move to Vietnam most of its products for the US market, including Pixel phones and its smart speaker Google Home, said Nikkei.
The company plans to export between 8 and 10 million smartphones this year, double last year, making Vietnam a key part of Google's growth in the smartphone market.
Google will transfer part of the production of the Pixel 3A phone to Vietnam before the end of this year, as well as in Thailand. But the development of new products will still be in China, noted the newspaper.