According to analysts, Apple CEO Tim Cook's trip shows that Vietnam is playing an increasingly important role in Apple's strategy.
On April 15-16, Tim Cook made his first visit to Vietnam and held six meetings with government officials, software developers, content creators, and artists.
During a meeting with Prime Minister Pham Minh Chinh , the Apple CEO expressed his desire to promote high-quality cooperation and investment in Vietnam, committing to purchasing more components manufactured domestically by partners, and contributing to innovation by increasing payments to Vietnamese suppliers.
According to analysts, Apple's leadership trip to Vietnam holds significant long-term implications, including boosting supply chain expansion and broadening the market for Apple products.
Apple CEO Tim Cook at Ho Giam Lake on April 15th. Photo: Tuan Hung
Vietnam is important in Apple's supply chain.
Speaking to VnExpress , analyst Ivan Lam of market research firm Counterpoint Research assessed this move as indicating Apple will continue to promote the diversification of its manufacturing ecosystem and supply chain.
"Vietnam has always been an important part of Apple's supply chain," said Mr. Lam.
According to this expert, Vietnam shares many similarities with India and has a strong foundation from Samsung's supply chain. In addition, Vietnam has advantages in labor costs and favorable, stable policies, which facilitate rapid production expansion.
In recent years, Vietnam has emerged as one of Apple's most important manufacturing hubs. According to Apple's 2022 supply chain statistics, Vietnam is home to 27 manufacturing facilities for Apple partners, including major names like Samsung, LG, and Lens. In addition, major outsourcing partners such as Foxconn, Luxshare, and Goertek are assembling products like AirPods, HomePod speakers, and smartwatches in Vietnam, with plans to expand to MacBooks and iPads as well.
"Expanding operations in Vietnam is a way for Apple to mitigate supply chain risks," according to CNBC .
Apple CEO Tim Cook met with content creators on the morning of April 15th. Photo: Tuan Hung
With the goal of increasing revenue in the services sector, Apple's supply chain now also includes product and application developers. One of the highlights of the Apple CEO's visit was meeting with content creators. He also mentioned his desire to promote Vietnamese culture to the world, including music and film, through platforms like Apple Music.
Commenting on this move, Ms. Quyen Pham, Vice President and Secretary General of the Vietnam Digital Content Creation Alliance (DCCA), said that this is an equal opportunity for both sides.
"The platforms themselves need high-quality content to serve their customers. Meanwhile, publishing on large cross-border platforms like Apple's will create opportunities for Vietnamese content creators to reach a global audience and share in revenue," Ms. Quyen said.
According to Apple's report, from 2019 to the present, the company has spent nearly 400 trillion VND (16 billion USD) through its supply chain, doubling its annual spending in Vietnam during the same period. The company's operations currently support more than 200,000 jobs through direct employment, supply chain management, and the app economy.
The potential market for Apple products.
On his X account, Tim Cook shares every activity in Vietnam, cleverly incorporating how Apple device features support developers and content creators. These activities may be aimed at increasing the brand's product presence in Vietnam.
CNBC reported that Tim Cook's visit comes as global iPhone sales in the first quarter fell 10% year-on-year, and the company faces competition in several key markets, such as China.
"CEO Tim Cook visited Vietnam as the American tech giant sought to boost sales in new markets," the site wrote.
According to IDC analyst Bryan Ma, one of the reasons Vietnam is important to Apple is "because of the growing fan base here." According to their market report, Apple is currently the third-largest phone brand in Vietnam by sales volume, after Samsung and Oppo.
In financial reporting briefings, Tim Cook also mentioned Vietnam as one of the examples of rapid growth. In the third quarter of 2023, the Apple CEO stated that the company had achieved record revenue in Vietnam, and also opened an online store to sell devices directly to users. In fact, according to statistics from domestic retail chains, sales on the first day of the iPhone 14 and iPhone 15 both exceeded one trillion VND.
Despite the many long-term opportunities presented by Tim Cook's visit, analyst Ivan Lam believes that Vietnam also needs to focus on investing in, developing, and continuously improving its infrastructure to enhance production efficiency, thereby increasing investment attraction from companies and aiming to become a manufacturing hub in Southeast Asia.
Luu Quy - Vnexpress.net
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