Xiaomi has begun phone production in Vietnam, according to a Nikkei report on Tuesday. The firm is using the country as a base to strengthen its presence in Vietnam and other Southeast Asian countries, like Malaysia and Thailand. Nikkei, citing local media reports, revealed that Xiaomi has entrusted production to DBG Technology, which runs a 200,000 square meter factory in Vietnam. The move by Xiaomi comes as new Covid-19 outbreaks in China have impacted the cost and efficiency of delivering goods to Southeast Asian markets. [Nikkei, in Chinese]