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Apple asks contractors to expedite relocation of production from China to Vietnam
eighteen.01.2021 [13:00],
Alexey Razin

Apple has recently adhered to two vectors in relations with contractors. First, it distributes orders more evenly between them in order to reduce risks and provide an opportunity for bargaining. Secondly, in order to reduce political risks, the share of products manufactured in China is systematically reduced. The Vietnamese economy only benefits from this.

Image source: Reuters

Back in November, it became known that Foxconn, at the request of Apple, will partially transfer the assembly of iPad tablets and MacBook laptops to Vietnam. Customs duties imposed on Apple products imported from China to the United States negatively affect the final cost of products and the profit margin of the American company, so Vietnamese production will certainly serve Apple’s interests in its home market.

Reuters reported that Vietnamese authorities have given a subsidiary of Foxconn (Fukang Technology) permission to build a $ 270 million plant in northern Bakjiang province to manufacture tablets and laptops. About eight million products will be produced here annually, according to the website of the Vietnamese government. Foxconn has already invested at least $ 1.5 billion in the Vietnamese economy, this year the amount will be increased by another $ 700 million, and another ten thousand local residents will be able to get jobs. Apple contractor is ready to invest $ 1.3 billion in the development of production in Thanh Hoa province, 160 km south of Hanoi.

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