Electronic firms continue to shift investment to Viet Nam

Tuesday, Jan 17, 2023 09:18

LG Electronics in Hai Phong City. Many tech giants have announced business expansion in Viet Nam. — Photo thanhphohaiphong.gov.vn

In continuation of moving their production hubs, this year many of the giants in the world of technology and electronics have announced business expansion plans in Viet Nam.

Recently, Apple revealed that it will move its MacBook production chain to Viet Nam in 2023. It has asked Foxconn, its biggest supplier, to launch a MacBook production chain in Viet Nam from May this year, while making plans to produce Macbook Pros in Viet Nam.

In 2025, about 20 per cent of the total number of iPads and Apple Watches will be produced in Viet Nam, along with 5 per cent of the MacBooks and 65 per cent of AirPods. Currently, 25 out of the 190 partners of Apple are running their factories in Viet Nam.

Foxconn, after investing US$1.5 billion in Viet Nam, plans to invest an additional $300 million in the Fukang factory in Quang Chau Industrial Park in northern Bac Giang Province.

Another Apple supplier, Goertek has announced its additional $300 million investment in Bac Giang Province. Meanwhile, Lxshare, which will assemble iPhone 15 Pro Max, is running six factories in Viet Nam with a total of 40,000 labourers.

At the same time, computer producer Dell is striving to make sure all of its chips are produced outside China.

Electronics firm Pegatron is also building a factory worth about $481 million in Hai Phong, while considering moving its R&D centre from China to Viet Nam at a suitable time.

Many other big companies such as OPPO, HP and Bose are also considering the relocation of production plants to Viet Nam, while others, including Xiaomi, Bosch, Panasonic, Amkor, Sharp and Compal, also plan to expand their business presence in the country.

Particularly, Korean firm Samsung, after pouring $18 billion and launching Southeast Asia’s largest R&D centre in Viet Nam, also plans to raise its investment in Viet Nam to $20 billion.

Another Korean electronics company, LG, is also making plans to inject additional $4 billion in Viet Nam.

Dr. Ho Quoc Tuan, a lecturer at Bristol University, commented that Viet Nam is benefiting from the diversification of production locations of international businesses.

Experts attributed the phenomenon to Viet Nam’s advantages such as low-cost workforce, and the country’s engagement in 15 free trade agreements covering more than 50 countries, as well as Viet Nam’s political stability. — VNS

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