Apple is Potentially Expanding Its Manufacturing to Vietnam: Tim Cook Meets Country's Prime Minister

Urian B., Tech Times 18 May 2022, 11:05 pm

While Apple is dealing with supply chain issues, the company is looking for other places to expand its manufacturing. Tim Cook, the CEO of the Cupertino giant, met up with the Prime Minister of Vietnam to discuss manufacturing efforts within the country.

Tim Cook Met with Vietnam's Prime Minister to Discuss Apple's Efforts in Vietnam

According to the story by MacRumors, Cook met up with the Prime Minister of Vietnam, Pham Minh Chinh for a discussion about Apple's efforts within the country. The article notes that the two met up at the in California at the Cupertino Apple Park.

It was said that the two reportedly talked about "trade investment, and finance." An article by iMore sites a Vietnamese news site called SGGP, which included the statements of the Vietnamese Prime Minister.

31 Companies with 160,000 Workers Already Helping Apple in the Country

The article included Chinh's statements regarding how he wants to "create a fair, transparent, and market-based business environment" in the Vietnamese Government. The Prime Minister noted that this move will give more ground in Vietnam to help enable US firms and investors.

There are already 31 companies within Vietnam that have 160,000 workers in total already working to help Apple. These companies and employees are already producing and assembling equipment and electronic parts for different products of Apple.

Vietnam's Prime Minister Asked Apple to Increase Business Activities Within the Country

Chinh reportedly requested that Cook increase Apple's "business activities in Vietnam." In response to the request, Cook thanked the country for being able to create a good environment for the company's operations.

Cook also revealed that the company indeed wants to extend its operations within the country especially when it comes to Apple's supply chain. The past few years have seen multiple reports that suggest that the company could shift its production focus from China to Vietnam and India.

Foxconn Got a License for a $270 Million Plant in Vietnam

This would allow Apple to diversify its supply chain and have its products manufacturerd in other countries. The Cupertino giant's work in Vietnam include the AirPods Pro, HomePod mini, and iPad assembly within the country.

Foxconn, a popular Apple Supplier, was given a license to create a plant in Vietnam. The license was given on January 2021 and is for a $270 million plant within the country.

Foxconn Invested $1.5 Billion in Vietnam Since 2007

This happened after Apple asked Foxconn to move some of the assembly for the iPad and MacBook from its regular location, China, to Vietnam, according to Forbes. Foxconn, a company founded in Taiwan, reportedly has a total investment of $1.5 billion in Vietnam and started its operations since 2007.

The company reportedly hired 10,000 local workers and invested another $700 million just this year alone. Although it has nine cities in China that host its 12 operational factories, Foxconn is going to move some of its efforts towards Vietnam in an attempt to diversify its manufacturing.

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Written by Urian B.