The business journal said that the company is working with a partner to convert an old Nokia factory in Bac Ninh province to handle the production.
The move comes amid rising labour costs in China and the escalating trade war between the world’s two largest economies.
The Vietnamese factory will be a key part of Google’s drive for growth in the smartphone market as it seeks to build a low-cost supply chain in Southeast Asia, Nikkei said.
The US technology company aims to ship some 8 to 10 million smartphones this year, double that of a year ago, the journal reported, citing sources.
Under current plans, Google will shift some production of the Pixel 3a smartphone from China to Vietnam before the end of this year, added Nikkei.
By diversifying its production into Vietnam, Google hopes to ensure sustainable production of the Pixel range, a showcase for its Android operating system.
In the first half of 2019, it has already shipped 4.1 million smartphones, thanks to the mid-range Pixel 3a, according to research firm IDC.
