On January 15th, in a filing submitted to the Shenzhen Stock Exchange, Goertek stated it would invest up to $280 million to establish a subsidiary in Vietnam to meet its "business expansion and long-term operational needs" there.
Goerktek's legal entity in Vietnam will manufacture consumer electronics products, ranging from headphones and smartwatches to virtual reality and augmented reality devices.
This project aligns with both the future development plans of the Chinese assembly company and the needs of its customers. The proposal states that the project will help to better utilize resources in Vietnam to improve the company's overall competitiveness.
Goertek is one of Apple's major suppliers in China. According to SCMP, Goertek's subsidiary in Vietnam, established through Goertek Hong Kong, may be located in Bac Ninh province, an area that attracts many South Korean investors such as Samsung Electronics.
South Korean companies are opening factories here to manufacture electronics, smartphones, semiconductors, and precision mechanical equipment. Goertek's latest move comes as Apple begins shifting more of its production out of China.
According to research by investment bank TD Cowen, Apple's suppliers – including Foxconn – have invested up to $16 billion to reduce their reliance on China by relocating factories to India, Vietnam, Mexico, and the United States.
Last year, Foxconn announced plans to invest $1.6 billion to strengthen its presence in India.
(According to SCMP)
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