More Electronics Firms Eye Vietnam for New Manufacturing Facilities

Jul 2019

A subsidiary of the Foxconn Technology Group, the world’s largest electronics contract manufacturer, is studying the feasibility of building a TV screen assembly plant in the North of Vietnam. The first phase of this project will cost Foxconn USD 40 million, and is expected to create over 3,000 jobs for the region. The authorities of the province have promised to support Foxconn in completion of the investment process and recruitment of a sufficient number of workers for the plant’s construction and operations at the earliest possible.

Foxconn (known as Hon Hai) in Vietnam already own several facilities in the Northern of Vietnam, dedicated to provide parts for Apple’s products assembly.

According to Nikkei Asian Review, another one of Apple’s key manufacturers, Chine-based GoerTek, is starting trial production of the newest generation of AirPods at its current audio factory in the north of Vietnam. Both Apple and GoerTek have asked their component suppliers involved in AirPods production to ship all necessary materials to Vietnam since October 2018. The initial volume of this trial stage will be small but GoerTek  will be able to increase the capacity once the Manufacturing processes are running smoothly.
These production plans are in line with large manufacturers securing production bases outside China to minimize the impacts of the ongoing trade war between the United States and China. 

(Sources: Nikkei Asia Review, South China Morning Post)

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