Science - Technology

Vietnam leads Southeast Asia in the number of production facilities for Apple.

TH (according to VnExpress) April 23, 2024 18:15

The number of Apple partners setting up factories or offices in Vietnam will increase from 27 to 35 in the 2022-2023 period, ranking first in the region and fourth in the world.

Một khu vực thuộc nhà máy Foxconn ở Bắc Giang. Ảnh: Facebook/Foxconn
An area of ​​the Foxconn factory in Bac Giang

According to the Supplier List (supplier list) just announced by Apple, in fiscal year 2023 (ending September 30, 2023), the company added many new partners but also eliminated some. Most of the partners have factories in Southeast Asia, India and South Asia.

"Apple's supplier list represents 98% of our direct spending on materials, manufacturing and product assembly worldwide in fiscal year 2023," Apple said.

In Vietnam alone, Apple added 8 new partners, bringing the total to 35, ranking first in Southeast Asia and fourth in the world after China (158), Taiwan (49) and Japan (44), ahead of the US (26) and South Korea (34). Last year, Vietnam ranked second in the region after Thailand and seventh in the world.

Since 2016, Vietnam has been one of the places with the strongest growth in manufacturing partners for Apple, with large factories such as Foxconn, Luxshare or component suppliers such as Samsung, Intel, LG.

China remains the top manufacturing location, accounting for 42% of Apple’s annual production. It is considered an attractive option due to its high cost efficiency and low production turnaround time, despite recent disruptions from the US-China trade war.

In Southeast Asia, apart from Vietnam, Apple's partners are mainly located in Thailand (24), Singapore (23), Malaysia (19), and the Philippines (17). Indonesia, where Apple CEO Tim Cook plans to invest in a new manufacturing facility, has one manufacturing partner.

Vietnam currently has large factories assembling Apple devices such as AirPods, iPads and Apple Watches. Analysts estimate that by 2025, Vietnam will contribute 20% of total iPad and Apple Watch production, 5% of MacBooks and 65% of AirPods.

On April 15-16, Tim Cook visited Vietnam and met with Prime Minister Pham Minh Chinh. The Apple CEO proposed promoting high-quality cooperation and investment, including pledging to buy more components produced by partners in Vietnam and supporting the innovation sector. The company also said it has supported more than 200,000 jobs through its supply chain and iOS application economy. Apple's total investment in Vietnam from 2019 to date has reached VND400 trillion (US$16 billion), through its supply chain.

TH (according to VnExpress)
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Vietnam leads Southeast Asia in the number of production facilities for Apple.