Apple Expands Investment and Manufacturing in Vietnam

Apple is significantly increasing its investment and manufacturing presence in Vietnam, diversifying its supply chain away from China. The tech giant plans to further boost quality investment and cooperation activities in the country, aiming to make Vietnam a global production base.

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Geeta Pillai
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Apple Expands Investment and Manufacturing in Vietnam

Apple Expands Investment and Manufacturing in Vietnam

Apple is significantly increasing its investment and manufacturing presence in Vietnam as part of a broader effort to diversify its supply chain away from heavy reliance on China. The tech giant has already been producing products like AirPods and Apple Watches in Vietnam, and recently moved some iPad manufacturing there from China.

During a meeting with Vietnamese Prime Minister Pham Minh Chinh in Hanoi, Apple CEO Tim Cook announced the company's plans to further boost quality investment and cooperation activities in Vietnam. Apple has already spent nearly $16 billion in the country since 2019 through its supply chain partners, which operate more than 70 factories with over 250,000 employees.

The Vietnamese government has agreed to set up a dedicated working group to support Apple's expansion in the country. Prime Minister Chinh also asked Apple to encourage its suppliers to tap more Vietnamese companies to deepen their participation in Apple's supply chain.

Apple's move to expand in Vietnam reflects a broader trend of U.S. companies reevaluating their trade relationship with China over concerns about unfair business practices and ongoing geopolitical tensions. Vietnam has emerged as a global electronics manufacturing hub, offering skilled labor and proximity to existing supply chains in southern China.

Apple's key suppliers, including Foxconn, Luxshare, and GoerTek, are also bolstering their presence in Vietnam to support the company's diversification strategy. The shift comes as Apple has seen declining iPhone sales in China, where local smartphone brands are gaining market share.

During his two-day visit to Hanoi, Cook engaged with suppliers, students, content creators, and users of Apple products. He expressed his positive experience in Vietnam and the strong innovation community he witnessed. Prime Minister Chinh thanked Apple for expanding its business in the country and creating over 200,000 jobs, while also seeking the company's support in developing renewable energy and high-quality human resource training.

Key Takeaways

  • Apple is significantly increasing investment and manufacturing in Vietnam.
  • Apple has spent nearly $16B in Vietnam since 2019 through supply chain.
  • Vietnam emerges as a global electronics manufacturing hub for Apple.
  • Apple's move reflects U.S. firms reevaluating trade with China over concerns.
  • Vietnam seeks Apple's support in renewable energy and human resource training.