Foxconn plans iPhone plant in Vietnam in response to US-China trade war

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Taiwanese electronics assembler Foxconn Technology Group is planning to open an iPhone manufacturing facility for Apple in Vietnam to mitigate the effects of the US-China trade spat, the Vietnam Investment Review reported on October 3.

Foxconn, known as Hon Hai Precision Industry Co in Taiwan, has begun talks with the Hanoi People’s Committee, Vietnam Chamber of Commerce and Industry director Vu Tien Loc was quoted as saying.

The report comes after several executives interviewed by Reuters last week singled out Vietnam and neighbouring Thailand as preferred destinations should they need to shelter operations from the trade war, citing hurdles such a lack of skilled labour and inadequate infrastructure.

Last month, US President Donald Trump suggested that ten per cent tariffs could be placed on mobile phones and laptops made in China, further straining companies in Apple’s supply chain amid slowing smartphone sales around the globe.

Samsung Electronics makes about one-third of its smartphones in Vietnam and the arrival of Foxconn could displace the South Korean giant’s position as the leading smartphone manufacturer in the country, said Tran Toan Thang, director of the Vietnamese National Center for Socio-Economic Information and Forecast.

Samsung and its local suppliers could also face greater difficulties in hiring workers following Foxconn’s arrival, as there is no longer an excess of workers in Vietnam, Tran said. But the arrival of another major foreign smartphone manufacturing firm in Vietnam could bring more opportunities in general for Vietnamese suppliers, he added.

“As there are more suppliers than it needs, Samsung has had the luxury of cherry-picking its local partners,” Tran was quoted as saying.

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Reading Time: 1 minute

Taiwanese electronics assembler Foxconn Technology Group is planning to open an iPhone manufacturing facility for Apple in Vietnam to mitigate the effects of the US-China trade spat, the Vietnam Investment Review reported on October 3.

Reading Time: 1 minute

Taiwanese electronics assembler Foxconn Technology Group is planning to open an iPhone manufacturing facility for Apple in Vietnam to mitigate the effects of the US-China trade spat, the Vietnam Investment Review reported on October 3.

Foxconn, known as Hon Hai Precision Industry Co in Taiwan, has begun talks with the Hanoi People’s Committee, Vietnam Chamber of Commerce and Industry director Vu Tien Loc was quoted as saying.

The report comes after several executives interviewed by Reuters last week singled out Vietnam and neighbouring Thailand as preferred destinations should they need to shelter operations from the trade war, citing hurdles such a lack of skilled labour and inadequate infrastructure.

Last month, US President Donald Trump suggested that ten per cent tariffs could be placed on mobile phones and laptops made in China, further straining companies in Apple’s supply chain amid slowing smartphone sales around the globe.

Samsung Electronics makes about one-third of its smartphones in Vietnam and the arrival of Foxconn could displace the South Korean giant’s position as the leading smartphone manufacturer in the country, said Tran Toan Thang, director of the Vietnamese National Center for Socio-Economic Information and Forecast.

Samsung and its local suppliers could also face greater difficulties in hiring workers following Foxconn’s arrival, as there is no longer an excess of workers in Vietnam, Tran said. But the arrival of another major foreign smartphone manufacturing firm in Vietnam could bring more opportunities in general for Vietnamese suppliers, he added.

“As there are more suppliers than it needs, Samsung has had the luxury of cherry-picking its local partners,” Tran was quoted as saying.

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