Apple CEO Tim Cook on Tuesday expressed his desire to extend the corporate’s investment in Vietnam. This announcement comes after Apple announced plans to transfer funds to its suppliers in Southeast Asia, including Vietnam. During the dialogue, Prime Minister Chinh expressed Vietnam’s commitment to establishing a task force to support Apple’s investments within the country.
Apple is increasingly considering Vietnam as a part of its supply chain diversification strategy aimed toward reducing dependence on China, which is currently the primary assembly site for many of the company’s smartphones and tablets. In Vietnam, Apple has moved production of iPads, AirPods and Apple Watches, and MacBook suppliers have also invested within the country.
In recent years, Vietnam has been a significant focus of Apple’s production chain outside China. The company works with leading suppliers equivalent to Luxshare, Foxconn, Compal and GoerTek, which have factories in Vietnam employing over 150,000 local employees. According to the newest company data, Apple can have 25 suppliers and a complete of 28 factories in Vietnam in 2022, which is similar as last yr, but in 2020 there will probably be 21 of them.
Companies are currently exploring options for moving their production lines to countries equivalent to Vietnam and India. This comes after a series of store closures in China as a result of Covid-19, which disrupted their supplies. Additionally, major suppliers equivalent to Foxconn have decided or are considering relocating to Vietnam, and a few have already moved parts of their operations outside China. All this is occurring within the context of political tensions between the United States and China. Meanwhile, some industry sources, who asked to not be named, said these moves remain confidential at these firms.
On Monday (April 15), Apple published an announcement on its official website outlining its plans to extend investment with its suppliers in Vietnam, while noting latest developments in its clean water support program for schools within the region. Apple’s investments in Vietnam have reached roughly VND 400 trillion (similar to $15.84 billion) and created roughly 200,000 jobs.
Cook arrived in Hanoi last Monday (April 15) on a two-day visit to fulfill with suppliers, students, content creators and users of Apple products. Cook’s visit coincides with efforts by U.S. President Joe Biden’s administration to strengthen Vietnam’s position in the worldwide technology supply chain as a part of a method to cut back U.S. dependence on China.
During his September visit to Vietnam, Biden officially upgraded the U.S.-Vietnam relationship to a “comprehensive strategic partnership.” The aim is to extend cooperation in key sectors equivalent to semiconductors and develop trade.
