Famous German broadcaster Deutsche Welle (DW) said there are signs that the Vietnamese economy is benefiting from the shift in the supply chain. Specifically, both Apple and Google plan to manufacture some of their products in Vietnam.
Many tech giants are planning to set up production bases in Vietnam
At the conference on the situation and proposed tasks and solutions to overcome difficulties and support production and business in the last 6 months of the year, organized by the Ministry of Planning and Investment at the end of June, Ms. Do Thi Thuy Huong, Deputy Chairman of the Vietnam Association of Supporting Industries (VASI), Member of the Executive Committee of the Vietnam Association of Electronic Enterprises (VEIA) announced that manufacturers in the global supply chain of large companies are gradually focusing on Vietnam.
Accordingly, Apple has relocated 11 factories of Taiwanese enterprises (China) in its supply chain to Vietnam; Many other companies such as Foxconn, Luxshare, Pegatron and Wistron are also expanding their existing production facilities in Vietnam.
Specifically, according to Nikkei Asia, Apple is moving some of its iPad production from China to Vietnam. At the same time, the Japanese newspaper said that this is “the first time” that Apple has done this. In addition to the current production transfer plan, Apple is known to have partnered with the Chinese company BYD to build an iPad production line in Vietnam. BYD is expected to go live soon, but will initially only produce a small number of iPads.
Elsewhere, Digitimes reported that Google is considering transferring orders for next-generation smartphones to factories of manufacturing partners in Vietnam. The US company’s goal is to avoid the risks of US-China trade tensions and China’s epidemic blockades.
Accordingly, Google will move a small portion of Pixel 7 orders to production in Vietnam for testing and “staff training.” Digitimes said Google’s new smartphone production line in Vietnam will be established after 2023. At present, the latest generations of smartphones will be manufactured in the Southeast Asian country.
Will Vietnam be the new factory of the world?
Earlier, speaking to the press, Vice President of the Vietnam Association of Supporting Industries (VASI) once said that the root cause of the trend of shifting supply chains to Vietnam comes largely from the fact that China has a relatively developed electronics industry. and information technology industry.
“In the global supply chain, they have grown to a higher level than just assembling as before. Vietnam is very similar to China in electronic manufacturing operations, both in labor and geographic location, infrastructure, logistics, etc. Doe Thi Thuy Huong.
The famous German television company Deutsche Welle (DW) said there are signs that the Vietnamese economy is benefiting from the shift in the supply chain.
In an interview with Reuters, Mr Raphael Mok of consulting firm Fitch Solutions said: “Vietnam will be one of the key beneficiaries of the supply chain shift”.
Many companies, especially in the electronics industry, spend a lot of money on investments in Vietnam. For example, in February, South Korean electronics giant Samsung announced it would invest another $920 million in Vietnam.
According to the German e-commerce magazine Elektronik Praxis, Chinese electronics companies such as Luxshare Precision Industry, Goertek and Pegatron are also moving their bases to Vietnam.
Daniel Müller, director of the Asia-Pacific Business Association in Germany, said Vietnam has always been on the priority list of German companies.
In an interview with Caijing (China) magazine, Dr. Oliver Massmann, general manager of Duane Morris Vietnam LLC, that Vietnam currently has enough factors to become the factory of the world, such as human resources, technology, government support and foreign investment.
“Vietnam has grown so rapidly economically and politically over the past five years, and within the next five years we may see a change that we could not even have foreseen,” he said.
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