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Apple to Move iPad, Macbook Assembly Lines to Vietnam

Updated: Dec 29, 2020

Following the request from Apple, the Taiwanese electronics manufacturer - Foxconn has initiated plans to move parts of the Ipad and Macbook’ assembly lines from China to Vietnam.

This isn't the first time Apple is looking to seek its global supply chain beyond China. Their manufacturing partners have ramped up iPhone production capacity in India, and other partners who assemble AirPods have added some assembly lines in Vietnam

There are many reasons that make Vietnam “an optimal choice” for Foxconn’s recent manufacturing relocation:

  1. Apple wants to diversify production and maintains the output following the escalating tension of the U.S - China trade war.

  2. Vietnam is one of the earliest countries to successfully pilot 5G technology worldwide, determining that technology will be the key driver of the country’s economic growth.

  3. Vietnam is the sweet-spot profile of its growing population of young and increasingly skilled labor force, together with competitive labor costs.

  4. Bac Giang province in Vietnam is in close proximity with China’s main manufacturing hubs such as Shenzhen, Guangzhou, Tianjin. etc.

  5. Vietnam has effectively controlled the coronavirus pandemic.

Foxconn is building assembly lines for Apple’s iPad tablet and MacBook laptop at its plant in Bac Giang province, 90-minute drive from Hanoi. The new production lines are scheduled to begin operations in the first half of 2021. Shifting iPad and Macbook production to Vietnam will mark the first time Foxconn has assembled the device outside of China. It will also create another milestone in Foxconn’s long history of investment in Vietnam.

Past investments Foxconn have been made in Vietnam in recent years:

This investment from Apple has established another major investment in Vietnam’s electronics industry. Earlier this year, Samsung invested $US 220 million to build its largest Research and Development center in Southeast Asia in Hanoi. In July 2020, Dell had a test run of for an assembly line for laptops in Vietnam.

Factors such as cost- efficient labor force, business-conducive tax regimes, stable political climate, etc., have added Vietnam to the white list of relocation beyond China. Interested in investing in Vietnam? Let Broad Avenue be your partner in advising business opportunities and mapping out strategies to maximize your profits. Contact us today to not miss out any crucial information.


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