Vietnam is gaining prominence in Apple’s strategy as the company aims to reduce its reliance on China, where the bulk of its iPhones and iPads are made
Apple’s chief executive Tim Cook has expressed his eagerness to ramp up investments in Vietnam, following the tech giant’s announcement of increased spending on suppliers within the Southeast Asian manufacturing powerhouse.
Vietnam is gaining prominence in Apple’s strategy as the company aims to reduce its reliance on China, where the bulk of its iPhones and iPads are made. In a bid to secure more stable production lines, Apple has been exploring the shift of some of its manufacturing to nations such as Vietnam and, more recently, India, especially after COVID-19 containment measures in China caused significant interruptions to Apple’s supply chain.
Cook shared his intentions during a meeting with Vietnamese Prime Minister Pham Minh Chinh, as reported by the state-run Voice of Vietnam. Further underlining its commitment, Apple announced on Monday that it plans to boost its expenditure on local suppliers. “There is no place like Vietnam, a vibrant and beautiful country,” Cook remarked, noting that Apple’s annual spend in Vietnam has doubled since 2019.
While specifics of the investment plan remain under wraps, Cook’s visit to Hanoi, which began on Monday and spans two days, includes engagements with students, developers, and content creators. Having established its presence in Vietnam over ten years ago, Apple credits itself with generating over 200,000 jobs in the country.
Additionally, Vietnam ranks among the world’s top five mobile game producers. According to Apple’s 2022 supplier list, the tech giant has 26 suppliers operating out of 28 factories in Vietnam. The majority of these are situated in the northern provinces, offering easy access to existing supply chains in southern China.
Northern Vietnam, with its history as an electronics manufacturing hub and affordable skilled workforce, is a strategic location for these operations.
