On January 15, in a filing to the Shenzhen Stock Exchange, Goertek said it would invest up to $280 million to establish a subsidiary in Vietnam to meet the needs of "business expansion and long-term operations" here.
Goerktek's Vietnam entity will manufacture consumer electronics products, from headphones and smartwatches to virtual reality and augmented reality devices.
The project meets both the Chinese manufacturer’s future growth plans and customer needs. The filing states that the project will help better utilize resources in Vietnam to improve the company’s overall competitiveness.
Goertek is one of Apple's major suppliers in China. According to SCMP, Goertek's Vietnamese subsidiary was established through the legal entity Goertek Hong Kong, possibly located in Bac Ninh province, which attracts many Korean investors such as Samsung Electronics.
South Korean companies have opened factories there to make electronics, smartphones, semiconductors and precision machinery. Goertek’s latest move comes as Apple begins to shift more of its production outside of China.
According to research by investment bank TD Cowen, Apple suppliers – including Foxconn – have invested up to $16 billion to reduce their dependence on China by relocating factories to India, Vietnam, Mexico and the US.
Last year, Foxconn announced plans to invest $1.6 billion to expand its presence in India.
(According to SCMP)
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