(Dan Tri) - In recent years, Vietnam has emerged as an important technology manufacturing center for Apple. The company has continuously built factories to assemble AirPods, MacBooks, Apple Watches and iPads in Vietnam.
On April 15, Apple CEO Tim Cook visited Vietnam. This visit is part of a series of activities to strengthen the US technology company's commitment to sustainable investment in Vietnam.
Vietnam's position in Apple's supply chain
In recent years, Apple has been working to boost the production of its product lines outside of China. Accordingly, Vietnam and India are the two countries that the technology giant is targeting to build new assembly facilities. In August 2022, Foxconn, one of Apple's largest manufacturing partners, signed a $300 million memorandum of understanding to expand its production operations in northern Vietnam. The group's new factory is located on a 50.5-hectare plot of land in Bac Giang province, creating about 30,000 local jobs.
Apple is actively expanding its production operations in Vietnam (Photo: SCMP).
In June 2023, Compal Electronics, a major manufacturing partner for the iPad and Apple Watch lines, revealed that the company had reached an agreement to lease land to build a new factory "to expand production capacity" in Vietnam. The factory is located in the Lien Ha Thai Industrial Park in 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 will produce about 20% of all iPads and Apple Watches by 2025. Meanwhile, the expected output of MacBooks is 5% and AirPods is 65%. By December 2023, Nikkei Asia reported that Apple had partnered with manufacturer BYD, an important iPad assembly partner, to transfer the New Product Introduction (NPI) process to Vietnam. Sources from the supply chain revealed that trial production of the new iPad model will begin in mid-February 2024, while the final product is expected to launch in the second half of this year. This move is considered an important step to enhance Vietnam's position as an alternative manufacturing hub outside of China. PhoneArena commented that Vietnam has a strategic position for global shipping activities. Vietnam's geographical location is close to Apple's existing supply chain headquarters in China, Japan and many other countries. In recent years, Apple has continuously boosted its production activities in Vietnam. Apple began assembling AirPods in Vietnam in March 2020. After that, a series of other products such as AirPods Pro, iPad, MacBook and Apple Watch were also produced in Vietnam.
Vietnam is considered to have a strategic role in Apple's supply chain (Photo: SCMP).
The Cupertino giant accomplishes these goals through manufacturing partners such as Foxconn, Pegatron or Wistron. According to SCMP , there are 27 factories of Apple partners manufacturing products in Vietnam. "Vietnam has always played an important and strategic role, with the potential to become one of the next global manufacturing hubs. Apple's recent supply chain map has demonstrated the ability of its manufacturing facilities in Vietnam to assemble iPads and scale up production," said Ivan Lam, an analyst at Counterpoint Research .
Apple actively promotes its presence in Vietnam
Apple recently announced that it will increase spending on suppliers in Vietnam, along with new progress in its initiative to support clean water for local schools. The company has spent nearly VND400 trillion since 2019 through its local supply chain and has more than doubled its annual spending in Vietnam over the same period. Apple began operating in Vietnam more than a decade ago and supports more than 200,000 jobs across the country through direct employment, its supply chain, and the iOS app economy. Vietnam’s app economy continues to be a growth driver, with employment nearly tripling since 2017. Vietnam is now among the top five countries in the world for mobile game production.
Apple CEO Tim Cook visited Vietnam on April 15 (Photo: Bloomberg).
"There is no place like Vietnam, a vibrant and beautiful country. I am so excited to be here connecting with students, innovators and customers, and learning about the diversity of how they use our products to do extraordinary things. At Apple, we work hard 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," said Tim Cook, Apple's CEO. As part of its commitment to protecting the environment, Apple has partnered with global water organization Gravity Water to install innovative rainwater harvesting systems in schools in Hoa Binh province, northern Vietnam. With Apple’s support, the organization is on track to reach 131 schools by the end of April, providing safe, reliable water year-round to more than 42,000 students, teachers, and families. In addition to clean water, Apple is working to bring clean energy to schools in rural Vietnam through its Power for Impact initiative. Launched globally in 2019 on the belief that access to clean energy leads to greater opportunity, Power for Impact funds small-scale clean energy projects that help local communities and organizations access reliable, cost-effective energy. Apple is partnering with the TRE Foundation to install solar panels at 20 schools in rural Vietnam, while supporting sustainability and STEM education for children. Across its supply chain, Apple is creating opportunities for learning and growth, managing health, and developing new leadership skills for local communities. Since 2019, more than 38,000 people in Vietnam have participated in Apple’s supplier wellness education program.
Apple continuously increases its presence in Vietnam (Photo: CNN).
This year, the company will expand its Disability Apprenticeship program to promote inclusion and provide greater opportunities for people with disabilities in its supply chain. Apple will continue to expand its $50 million Supplier Employee Development Fund, including education programs that build skills for jobs now and in the future, as the company increases its investment in Vietnamese suppliers. Apple supports students and teachers across the country in STEM education with programming and app development resources in Vietnamese, including Apple’s Swift Playgrounds app and the Everyone Can Code project, which allows teachers to guide students in designing and building their first apps. In mid-May 2023, the company also launched its online store for the Vietnamese market. The online Apple Store has a team of experts to share expertise in Vietnamese and support customers when needed. Most recently, in an official announcement made in early March, Apple said the company is looking for Vietnamese-speaking engineers with solid software engineering skills, good foreign language skills, and an understanding of local culture. The position will join a team in Singapore that specializes in designing Siri and other cloud-based services. The team's main mission is to make Siri the best smart assistant in the world. This also opens up the future for Siri to support the Vietnamese language.
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