In addition to Apple, many other technology giants have also started to offer cooperation by setting up factories in Vietnam.
Home to many different industrial parks, the port city of Hai Phong is in the crosshairs of companies processing electronic components in building factories and manufacturing equipment in Vietnam.
“We are not just selling land, what we are selling is also the future of this area,” said Mr. Tuan, Business Manager at Deep C Industrial Park Complex (Dinh Vu Industrial Park – Hai Phong). Rest of the world.
Big slice of pie for Vietnam
This industrial park is the destination of Pegatron Group, a leading supplier of components for giants such as Apple and Microsoft with tens of thousands of employees.
According to Rest of the world, this is just one of many companies following the infrastructure upgrade fever in the north to attract electronics manufacturers to leave China and go to Vietnam. “Revenue over the past five years is almost half of what it took us 20 years to achieve,” said Bruno Jaspaert, CEO of Deep C.
Foxconn has invested more than USD 300 million to sublease 50.5 hectares of land in Quang Chau Industrial Park (Bac Giang). Photo: New York Times.
In addition to changes in infrastructure and factories, Vietnam is also becoming a promising destination for businesses thanks to tax incentives, free trade agreements and the pursuit of sustainable economic development. Rest of the world said.
However, the fact that factories are growing too fast also prevents utilities from keeping pace. In Bac Giang, housing units advertised as “premium” for workers appeared among the vacant lots overgrown with weeds.
This residential complex looks very flashy, equipped with air-conditioning inside and billboards in many different languages to attract foreigners to stay. But up to half of the rooms are empty, no one is alive.
Speak against Rest of the world, said Mr. Minh Hoang, project manager at Hai Long Construction Joint Stock Company in Hai Phong, said that amid trade tensions between the US and China, the country’s small suppliers have turned to his company to build a factory. But recently, major brands have also offered to work with.
For example, this year, the Hai Long company built a new factory for LG Display and just signed a contract with Amkor Technology, a major American semiconductor manufacturer. “Projects are getting bigger and the demands made by the partners are also getting stricter,” said Mr. Hoang.
Apple, in particular, is one of the big names gradually moving production lines from China to Vietnam. Its partners have started production of iPad, Apple Watch, MacBook and AirPod in our country.
In 2015, only eight Apple suppliers had factories in Vietnam. But that number has increased to 26 factories by this year. In which there are factories responsible for assembling and testing semiconductor components, packaging and processing printed circuit boards.
Vietnam creates favorable conditions for foreign companies
But the problem is that none of these suppliers are Vietnamese. In fact, domestic component supply companies do not have the same real estate or investment priorities as foreign companies.
“Vietnam is rolling out the red carpet for foreign investors. Our country has exempted many taxes to attract them,” said Ms. Truong Thi Chi Binh, Vice President and Secretary General of Vietnam Supporting Industry Association. Rest of the world.
Therefore, Vietnam still has no domestic suppliers of components, so it will be difficult to break into this field, said Timothy Sturgeon, a researcher at the Massachusetts Institute of Technology’s Industrial Performance Center.
“Apple and many other brands will come to Vietnam with their outsourcing partners from all over the world, but there are no domestic names,” he added.
Many technology giants have decided to move production from China to countries such as Vietnam or India. Photo: Getty Images.
Share with Rest of World, Nguyen Van Man said his company has been responsible for producing packaging and printing for major brands such as Samsung, Sharp and Mitsubishi. However, when he learned that Apple would be moving its supply chain to Vietnam, he thought he would have no hope of working with the company.
Mr Man said this case is like a “stick and carrot”, with rewards and punishments for cooperating with them. “But this root is not easy to eat,” he said Rest of the world. Mr Man also said he once lost a major contract with a US partner because he didn’t have enough yard for workers to escape if a fire broke out.
“They just borrow our land and our workers to export their products,” he said. That is why he believes that Vietnamese companies should not compete with each other to win a piece of cake from these technology giants.
@ Zing News