(Dan Tri Newspaper) - In recent years, Vietnam has emerged as an important technology manufacturing hub for Apple. The company has continuously built factories to assemble AirPods, MacBooks, Apple Watches, and iPads in Vietnam.
On April 15th, Apple CEO Tim Cook visited Vietnam. This visit is part of a series of activities aimed at strengthening the American technology company's commitment to sustainable investment in Vietnam.
Vietnam's position in the Apple supply chain
Over the years, Apple has been working to expand its product manufacturing operations outside of China. Accordingly, Vietnam and India are two countries the tech giant is targeting for new assembly facilities. In August 2022, Foxconn, one of Apple's largest manufacturing partners, signed a memorandum of understanding worth $300 million to expand its production in northern Vietnam. The company's new factory is located on a 50.5-hectare plot of land in Bac Giang province and will create approximately 30,000 local jobs.
Apple is actively expanding its manufacturing operations in Vietnam (Photo: SCMP).
In June 2023, Compal Electronics, a key manufacturing partner for iPads and Apple Watches, revealed it had reached a land lease agreement to build a new factory "to expand production capacity" in Vietnam. The factory is located in the Lien Ha Thai Industrial Park, Thai Binh province. Previously, Compal Electronics also manufactured some Apple products at its factory in Vinh Phuc. According to a report from JPMorgan , factories in Vietnam are expected to produce approximately 20% of total iPad and Apple Watch production by 2025. Meanwhile, projected MacBook production is 5% and AirPods production is 65%. By December 2023, Nikkei Asia reported that Apple had partnered with BYD, a key iPad assembly partner, to transfer its New Product Introduction (NPI) process to Vietnam. Sources from the supply chain reveal that trial production of the new iPad model began in mid-February 2024, while the final product is expected to launch in the second half of this year. This move is considered a significant step towards enhancing Vietnam's position as an alternative manufacturing hub outside of China. PhoneArena notes that Vietnam has a strategic location for global shipping. Its geographical proximity to Apple's existing supply chain hubs in China, Japan, and other countries is crucial. In recent years, Apple has continuously expanded its manufacturing operations in Vietnam. Apple began assembling AirPods in Vietnam in March 2020. Subsequently, a range of other products such as AirPods Pro, iPads, MacBooks, and Apple Watches have also been manufactured in Vietnam.
Vietnam is considered to have a strategic role in Apple's supply chain (Photo: SCMP).
The Cupertino giant achieves these goals through manufacturing partners such as Foxconn, Pegatron, and Wistron. According to SCMP , 27 factories belonging to Apple's partners are producing products in Vietnam. "Vietnam has always played a crucial and strategic role, with the potential to become one of the next global manufacturing hubs. Apple's recent supply chain map has demonstrated the capabilities of Vietnamese manufacturing facilities in assembling iPads and scaling up production," commented Ivan Lam, an analyst at Counterpoint Research .
Apple is actively expanding its presence in Vietnam.
Recently, Apple announced it will increase its spending on suppliers in Vietnam, along with new progress in its initiative to support clean water for local schools. The company has spent nearly VND 400 trillion since 2019 through its local supply chain, more than doubling its annual spending in Vietnam during the same period. Apple began operating in Vietnam over a decade ago and supports more than 200,000 jobs nationwide through direct employment, supply chain management, and the iOS app economy . Vietnam's app economy continues to be a growth driver, with the number of jobs nearly tripling since 2017. Currently, Vietnam is among the top 5 countries in the world for mobile game production.
Apple CEO Tim Cook visited Vietnam on April 15 (Photo: Bloomberg).
"There's no place quite like Vietnam, a vibrant and beautiful country. I'm incredibly excited to be here connecting with students, creators, and customers, and to better understand the diversity in how they use our products to create extraordinary things. At Apple, we strive to build deeper connections and bring more benefits to the people where we operate. From partnering with local suppliers to supporting clean water projects and educational opportunities, we are committed to continuing to strengthen our connections in Vietnam," shared Tim Cook, Apple's CEO. As part of its commitment to environmental protection, Apple has partnered with the global clean water organization Gravity Water to install advanced rainwater harvesting systems in schools in Hoa Binh province, in northern Vietnam. With Apple's support, the organization is on track to reach its goal of providing safe, year-round water to 131 schools by the end of April, supplying over 42,000 students, teachers, and families with clean water. Beyond clean water, Apple is also working to bring clean energy to schools in rural Vietnam through its Power for Impact initiative. Launched globally in 2019 with the belief that access to clean energy creates more opportunities, the Power for Impact initiative funds small-scale clean energy projects to help local communities and organizations access reliable, cost-effective energy sources. Apple is partnering with the TRE Foundation to install solar panel systems in 20 schools in rural Vietnam, while also supporting educational programs for children on sustainability and STEM. In its supply chain, Apple is creating opportunities for learning and development, health management, and the development of new leadership skills for the local community. Since 2019, more than 38,000 people in Vietnam have participated in Apple's supplier health education program for employees.
Apple is continuously expanding its presence in Vietnam (Photo: CNN).
This year, the company will expand its Vocational Training Program for People with Disabilities to promote inclusion and provide greater opportunities for people with disabilities in the supply chain. Apple will continue to expand its programs within the $50 million Supplier Employee Development Fund, including education programs that build skills for current and future jobs, as the company increases its investment in Vietnamese suppliers. Apple supports students and teachers nationwide in STEM education with programming and app development resources in Vietnamese, including Apple's Swift Playgrounds app and the All-Can-Program project. Through this, teachers can guide students in designing and building their first applications. In mid-May 2023, the company also launched an online store for the Vietnamese market. The Apple Online Store has a team of experts to share expertise in Vietnamese and support customers as needed. Most recently, in an official announcement made in early March, Apple stated that the company is seeking Vietnamese-speaking engineers with strong software skills, excellent foreign language abilities, and a good understanding of local culture. The positions will be part of a team based in Singapore, specializing in designing Siri and other cloud-based services. This team's primary mission is to make Siri the best intelligent assistant in the world. This also opens the door to the possibility of Siri supporting the Vietnamese language in the future.
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