The world’s largest contract manufacturer of notebook PCs, Compal Electronics, will build a production facility in Vietnam.

Compal has looked at Vietnam in the past, but with pronounced labor shortages in Southeastern China, the company is revisiting its plans. The new plant is expected to be finished in the second half of 2010 or later, according to published reports.

Compal also is constructing its fifth notebook plant in Kunshan, China.

Other notebook PC makers currently expanding include Inventec in Chongqing.