Apple Completes Transfer of 11 Manufacturing Units to Vietnam

Oct 2023

According to Mr. Nguyen Thang Vuong, Head of the European and American Markets Division under the Ministry of Industry and Trade, Apple has relocated 11 factories for manufacturing audiovisual devices to Vietnam. According to the list of Apple’s global suppliers released in 2022, 25 of its supplier firms are establishing factories in several provinces in Vietnam, including LG Display, Samsung Electronics, Advanced Semiconductor Engineering Technology, Murata Manufacturing, and more.

Apple’s manufacturing relocation exemplifies the shift in the global supply chain, with Vietnam playing a key role. Similarly, Intel Corporation has expanded its second-phase chip testing factory in Ho Chi Minh City, with a total investment of 4 billion USD. The Danish firm Lego Group has also invested in building a factory in Binh Duong with a total capital of 1 billion USD. In addition, South Korea’s Samsung Group has recently shifted its entire smartphone production line to Vietnam and India, with 60% of Samsung’s global smartphone production taking place in Vietnam.

This migration of Apple and other manufacturing giants to Vietnam provides local businesses enhanced access to Western market. However, these developments also bring several challenges for Vietnamese enterprises seeking to integrate into the expansive supply chains of these global companies.

Following the suggestions of the Vietnam Supporting Industries Association (VASI), local governments are now seeking to create more robust laws to guarantee that domestic companies are able to adopt new technology and compete in the market in a sustainable manner.

(Source: Vietnam Investment Review)

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