Google plans to begin developing and manufacturing high-end smartphones in Vietnam this year, Nikkei Asia has reported.

The company already works with a broad network of suppliers in Vietnam that assemble a range of Google products, including Pixel smartphones. Under the new plan, Google is expected to start the “new product introduction” (NPI) process for its premium Pixel, Pixel Pro and Pixel Fold devices in the south-east Asian country.

NPI is a key stage in bringing electronics to market. It covers process development, testing, verification and refinements before mass production begins. Development of the lower-priced Pixel A series is expected to remain in China for now.

The shift would further reduce Google’s reliance on China’s manufacturing ecosystem for Pixel devices, as more global tech firms expand capacity in south-east Asia. Samsung makes many of its products in Vietnam, while Apple has been gradually increasing production through suppliers in the country, reflecting a broader trend of diversifying supply chains.

Vietnam has attracted manufacturers in part because labour and operating costs are typically lower than in China, where wages have risen over the past decade. A recent analysis by China Briefing estimated average monthly manufacturing wages in Vietnam at about $250 to $400, while overall operating costs in China can be roughly 50% higher -- a gap that can be significant in labour-intensive work such as smartphone assembly.

Vietnam’s participation in free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement, also offers exporters tariff advantages and easier access to major markets.