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The northern province of Thai Binh in Vietnam has just awarded the investment registration certificate for the project “Investing in building a factory for the processing of electronic components, computer components and smart devices”. The project, which is being carried out by Compal – a manufacturer of Apple – one of the leading global technology companies
Compal Electronics (Vietnam) Co., Ltd. proposed the project to the province at the end of 2022, which will be located in Thai Binh’s Lien Ha Thai Industrial Park.
According to Ray Chen, the vice president of the group, Compal Group plans to expand its production capacity in Vietnam in 2019 to increase the group’s exports to USD 1.5-2 billion per year.
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According to a report from local media, many of the giants in the world of technology and electronics have announced plans for business expansion in Vietnam this year in continuation of relocating their manufacturing hubs.
Apple recently announced that it will move its MacBook production chain to Vietnam in 2023. It has asked Foxconn, its largest supplier, to launch a MacBook manufacturing chain in Vietnam from May this year, while making plans to produce Mac Pro in Vietnam, the Vietnamese news agency reports.
By 2025, approximately 20% of the total number of iPads and Apple Watches will be produced in Vietnam, along with 5% of the MacBook and 65% of the AirPods. Currently, 25 of Apple’s 190 partners operate their factories in Vietnam.
Foxconn, after investing USD 1.5 billion in Vietnam, plans to invest another USD 300 million in the Fukang plant in Quang Chau industrial park in Bac Giang province.
Goertek, another Apple supplier, has announced its additional $300 million investment in Bac Giang. Meanwhile, Lxshare, which will assemble the iPhone 15 Pro Max, has six factories in Vietnam with a total of 40,000 workers.
At the same time, computer maker Dell is trying to ensure that all of its chips are produced outside of China.
Electronics company Pegatron is also building an approximately USD 481 million factory in Hai Phong, while moving its R&D center from China to Vietnam at an opportune time.
Many other major companies such as OPPO, HP and Brose are also considering relocating production facilities to Vietnam, while others including Xiaomi, Bosch, Panasonic, Amkor and Sharp are also planning to expand their business presence in the country.
In particular, the Korean company Samsung, after pouring USD 18 billion and launching Southeast Asia’s largest R&D center in Vietnam, also plans to increase its investment in Vietnam to USD 20 billion in the near future .
Another Korean electronics company, LG, is also planning to inject an additional $4 billion into Vietnam.
Dr. Ho Quoc Tuan, a lecturer at the University of Bristol, noted that Vietnam benefits from the diversification of production sites from international companies.
Experts attributed the phenomenon to Vietnam’s advantages, such as cheap labor and the country’s involvement in 15 free trade agreements covering more than 50 countries, as well as Vietnam’s political stability, according to Vietnamese news agency.
