Tim Cook, Apple's CEO, on Tuesday expressed his desire to increase the company's investment in Vietnam. This statement comes after Apple announced its plans to allocate funds to its suppliers in Southeast Asia, including Vietnam. During the dialogue, Prime Minister Chinh expressed Vietnam's commitment to forming a task force to support Apple's investment in the country.
Apple is increasingly prioritizing Vietnam as part of its supply chain diversification strategy to reduce reliance on China, which currently serves as the primary assembly location for most of its smartphones and tablets. In Vietnam, Apple has shifted production of iPads, AirPods and Apple Watches, while MacBook suppliers have also invested in the country.
Vietnam has been a major focus of Apple's manufacturing chain outside of China in recent years. The company works with leading suppliers such as Luxshare, Foxconn, Compal, and GoerTek, which have factories in Vietnam employing more than 150,000 local workers. According to the company's latest data, Apple will have 25 suppliers with a total of 28 factories in Vietnam in 2022, the same as last year, but up from 21 suppliers in 2020.
Companies are now exploring options to move their production lines to countries such as Vietnam and India. This follows a series of closures in China due to Covid-19, which has disrupted their supply. In addition, major suppliers such as Foxconn have decided or are considering moving to Vietnam, with some already moving parts of their operations out of China. All of this comes amid political tensions between the United States and China. Meanwhile, some industry sources, who asked not to be named, said that these moves remain confidential within these companies.
Apple recently released a statement via its official website on Monday (April 15) outlining its plans to increase investment in its suppliers in Vietnam, while also noting new developments in its clean water support program for schools in the region. Apple's investments in Vietnam have reached around 400 trillion VND (equivalent to $15.84 billion) and have created around 200,000 jobs.
Cook arrived in Hanoi last Monday (April 15) for a two-day visit to meet with suppliers, students, content creators, and users of Apple products. Cook's visit coincides with efforts by the administration of US President Joe Biden to strengthen Vietnam's position in the global technology supply chain, as part of a strategy to reduce US dependence on China.
During his visit to Vietnam in September, Biden officially upgraded the status of the US-Vietnam relationship to a "comprehensive strategic partnership". The goal is to increase cooperation in critical sectors such as semiconductors and expand trade.
