Apple Supplier Foxconn to Invest over US$550 Million in Two Projects in Viet Nam

9:27:33 AM | 7/8/2024

Foxconn, the Taiwan-based supplier to Apple, will invest about US$551 million in two new projects in Viet Nam’s northern coastal province of Quang Ninh.

The above information was highlighted in the recent articles released by the South China Morning Post (SCMP) and the U.S. website

Accordingly, the Taiwanese company has been granted approval to produce smart entertainment products and smart-system equipment at the new facilities

The company has been licensed for a US$264 million project in Song Khoai Amata Industrial Park to produce smart entertainment products, with designed capacity of about 4.2 million units per year.

It has also been permitted to invest in a US$287 million project in Bac Tien Phong Industrial Park to make smart-system equipment, the posting said.

Foxconn, whose main subsidiary Hon Hai Precision Industry is responsible for assembling the bulk of the world's iPhones, has been diversifying its production bases with new manufacturing sites in places like India and Viet Nam.

The two new projects bring the total investment pledged by Foxconn in the province to about US$1 billion.

The Quang Ninh provincial government will form a working group to help Foxconn quicken the process with "supportive measures and creating the most favorable conditions" to complete construction by September 2025.

The government last year announced two other Foxconn plants that would make electronic components, supported with a total investment of US$246 million.

Meanwhile, in recent April, U.S.-based tech giant Apple announced on its Viet Nam website that it would "increase spending on suppliers" in the country.

The company has spent nearly US$16 billion since 2019 through its local supply chain, and more than doubled its annual spending to Viet Nam during the same period.

Since its operation in Viet Nam a decade ago, Apple has helped generate more than 200,000 jobs.

Also in April, Apple chief executive Tim Cook paid a two-day visit to Viet Nam, as the U.S. tech giant's efforts to diversify its supply chain comes into focus again.

Foreign investment disbursement in January-June period reached a five-year high of US$10.84 billion, according to official data.

A report from the Ministry of Planning and Investment's Foreign Investment Department (FIA) showed that as of June 20, foreign investment inflows into Viet Nam during the reviewed period also saw an increase of 13.1 percent to nearly US$15.19 billion.

Source: VGP