Vietnam and Taiwan Foxconn Receive Investment Certificates... Establishing Factories Worth $270 Million

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Vietnamese government has issued an investment certificate worth $270 million (approximately 298 billion KRW) to Taiwan's Foxconn (Hon Hai Precision), which manufactures Apple's laptops and tablet PCs on consignment. As a result, it is expected that Apple's flagship products such as MacBooks and iPads will be produced in Vietnam. This move is interpreted as part of the de-China strategy following the U.S. government's policy to shift supply chains out of China.

According to foreign media including Singapore's CNA on the 18th, the Vietnamese government issued a $270 million investment certificate to Taiwan's Foxconn on the same day. Consequently, a Foxconn factory will be established in Bac Giang Province in northeastern Vietnam, where 8 million laptops and tablet PCs are expected to be produced annually. Foxconn is also expected to hire more than 10,000 local workers at this factory, which will produce Apple's laptop computers, MacBooks, and tablet PCs, iPads, in the future.

Earlier in November last year, Taiwanese and Vietnamese media reported that some of Foxconn's production lines in China, the world's largest electronics contract manufacturer, were planned to be relocated to Vietnam at Apple's request. This was interpreted as a de-China move following the Trump administration's announcement of additional tariffs on Chinese products amid the U.S.-China conflict.