Japanese toy makers are paying more attention to Vietnam as a production foothold, according to the Japanese press.
Rising material and personnel costs coupled with safety concerns over Chinese-made products are prompting toy makers to consider their production options.
China currently manufactures about 90 per cent of Japanese toys, with production outsourced to local factories.
However, Bandai intends to increase production in Vietnam after it started producing capsule toys there earlier this year.
Namco Bandai President Takeo Takasu says it is trying to urge partner factory operators in China to also expand into the Southeast Asian country.
In September Tomy began manufacturing its Pop Up Pirate products in Northern Vietnam, for shipments to Europe. The firm intends to shift 30 per cent of its production in China to Thailand and Vietnam over the next three years.
But both firms are yet to make full-fledged investments in Vietnam due to insufficient development of parts, printing and other related industries in the country.