Apple Moves 11 Manufacturing Facilities to Vietnam

During an online forum on Vietnam’s role in the global supply chain, Nguyen Thang Vuong from the Europe-America Market Department of the Ministry of Industry and Trade (MoIT) discussed Apple’s relocation of 11 manufacturing units to Vietnam.

Vuong also mentioned that Intel is expanding its Phase 2 chip verification plant in Ho Chi Minh City with a staggering investment of $4 billion. This shift in the global supply chain is becoming increasingly evident, with companies like Lego investing $1 billion in a factory in Binh Duong province. American corporations such as Boeing, Google, and Walmart are also planning to extend their supplier networks and manufacturing bases in Vietnam. Samsung has notably relocated its entire mobile phone production line to Vietnam and India, with 60% of its global smartphone output now being manufactured in Vietnam.

While this migration of manufacturing groups presents opportunities for Vietnamese businesses to access Western markets and foreign direct investment, it also poses challenges for integration into the supply chains of these global giants. Do Thi Thuy Huong, vice-chairwoman of the Vietnam Supporting Industries Association (VASI), highlighted the expansion of major conglomerates like Foxconn, Luxshare, Pegatron, and Wistron in Vietnam. VASI emphasizes the need for stronger policies to ensure domestic businesses can assimilate technologies and compete sustainably.

Ngo Khai Hoan, deputy director of the Industrial Department under the MoIT, stressed the importance of understanding the potential of domestic supporting industries to attract foreign direct investment. The Industrial Department plans to develop policies, build capacity for local enterprises, and facilitate connections between domestic businesses and multinational corporations like Samsung and Toyota.