Apple to Transform Vietnam into One of its New Manufacturing Hubs

Jan 2023

Apple is looking to diversify its supply chain outside of China, with Vietnam, India, and Brazil forecasted to make up 30% of Apple supplier’s Foxconn output. Particularly, Vietnam has typically welcomed businesses eager to shift production away from China, including Apple.

As cited by Bloomberg, major electronics producers are moving more briskly to expand their production capacity globally and take advantage of local incentive programs. It initially began with Vietnamese manufacturers being hired in the past to produce some of Apple’s bestselling items, like iPads and AirPods. When Covid-19 lockdowns began to impact China’s supply chain, Apple gradually began moving its iPad production to Vietnam.

Vietnam will start manufacturing some Apple Macbook computers in 2023, as reported by Nikkei Asia. The move would be significant given that the MacBook is Apple’s final large product that is still produced exclusively in China. According to JP Morgan analysts, Vietnam will produce 65% of Apple’s wireless AirPods by 2025 as the company keeps moving production out of China. In addition, Vietnam would also produce 5% of MacBooks, 20% of iPads, and 20% of Apple Watches.

It is notable that Foxconn leased 50.5 hectares of property in the province of Bac Giang in August with plans to erect a USD 300 million facility that will employ 30,000 people.

(Sources: VNExpress; Techwire Asia; Nikkei Asia)

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