Electronic firms continue to shift investment to Việt Nam

January 17, 2023 - 09:17
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 Việt Nam.
LG Electronics in Hải Phòng City. Many tech giants have announced business expansion in Việt Nam. — Photo thanhphohaiphong.gov.vn

HÀ NỘI — 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 Việt Nam.

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

In 2025, about 20 per cent of the total number of iPads and Apple Watches will be produced in Việt 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 Việt Nam.

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

Another Apple supplier, Goertek has announced its additional $300 million investment in Bắc Giang Province. Meanwhile, Lxshare, which will assemble iPhone 15 Pro Max, is running six factories in Việt 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 Hải Phòng, while considering moving its R&D centre from China to Việt Nam at a suitable time.

Many other big companies such as OPPO, HP and Bose are also considering the relocation of production plants to Việt 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 Việt Nam, also plans to raise its investment in Việt Nam to $20 billion.

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

Dr. Hồ Quốc Tuấn, a lecturer at Bristol University, commented that Việt Nam is benefiting from the diversification of production locations of international businesses.

Experts attributed the phenomenon to Việt 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 Việt Nam’s political stability. — VNS