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Apple redirects Chinese investment to Vietnam

July 13, 2023 15:07 PM

More and more Apple suppliers in China are shifting manufacturing lines or increasing investment in Vietnamese companies.

Apple moves its investment focus from China to Vietnam

Apple’s supply network in China has lately relocated to Vietnam to create an assembly line. According to the South China Morning Post, the factory and the MacBook production line have been gradually relocated to Vietnam:

  • The main manufacturer of the Ipad and Apple Watch recently announced that it will invest in the Lien Ha Thai Industrial Zone, which specializes in manufacturing, processing, and assembling computers, communications equipment, civil electricity, and electronic components, with an initial capital of up to 260 million USD.
  • Compal Electronics Vietnam has agreed to lease 40 hectares in the Lien Ha Thai Industrial Zone. The factory is anticipated to be completed and tested within the year. It will also be operational in the first quarter of 2024.
  • The Apple Vietnam facility is anticipated to manufacture 12 million goods by Phase I in 2026, 24 million by 2030, and engage around 17,000 Vietnamese employees.
  • According to Apple’s most recent supplier list, Apple earlier had manufacturing operations in Vinh Phuc, as well as well-known Apple manufacturing factories in China such as Chongqing and Jiangsu.

Previously, Digitimes reported in early 2023 that Quanta Computer planned to manufacture Macbooks in Vietnam after creating an agreement to establish a large-scale computer manufacturing project in Nam Dinh.

The opportunity to become a supplier when Apple invests in Vietnam

The relocation of Apple to Vietnam represents an excellent potential for the growth of electronic technology in Vietnam. The existence of Apple’s facilities in Vietnam will contribute to huge income for the country’s economy, as well as confirm Vietnam’s position and reputation in electronic device manufacturing and create jobs for thousands of people.

According to data, Apple had 26 suppliers and 28 factories in Vietnam in 2022. These suppliers are located throughout the Northern Region and serve the demands of Apple’s electrical device manufacture. As Apple increases its investment in Vietnam, Vietnamese firms, particularly those in the electronics and related technology industries, will have greater opportunities to become suppliers to this world-leading company.

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