Apple assembler Foxconn considering iPhone factory in Vietnam
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Apple’s biggest iPhone assembler Foxconn is considering setting up a factory in Vietnam to mitigate any impact of the ongoing trade war. The report from Vietnamese state media comes after several executives interviewed last week singled out Vietnam and neighboring Thailand as preferred destinations should they need to shelter operations from the trade war, braving hurdles such a lack of skilled labor and inadequate infrastructure.
Foxconn Group and the Hanoi People’s Committee are working together to open an iPhone manufacturing facility in Vietnam to negate the impacts of the U.S.-China trade war.
Vu Tien Loc, head of the Vietnam Chamber of Commerce and Industry, raised the matter with Prime Minister Nguyen Xuan Phuc at a meeting on Nov. 22.
“We are discussing the possibility of this with Foxconn,” Loc said, without elaborating. Hanoi People’s Committee Chairman Nguyen Duc Chung declined to comment.
Taiwan’s Foxconn, formally Hon Hai Precision Industry Co Ltd said it “follows a strict company policy of not commenting on any matters related to current or potential customers, or any of their products”.
In trade talks on Saturday, U.S. President Donald Trump and Chinese President Xi Jinping agreed not to introduce any tariffs for 90 days as negotiations continue.
Questions & Answers
Q.Why is Foxconn considering opening an iPhone manufacturing facility in Vietnam?
Why is Foxconn considering opening an iPhone manufacturing facility in Vietnam?
Foxconn is considering a factory in Vietnam to mitigate the impact of the ongoing trade war between the U.S. And China. This move aims to shelter its operations from the economic tensions.
Q.Which specific entities are collaborating to establish this new manufacturing facility?
Which specific entities are collaborating to establish this new manufacturing facility?
Foxconn Group and the Hanoi People's Committee are working together on the potential iPhone manufacturing facility. This collaboration aims to negate the trade war's impacts on production.
Q.What potential challenges have executives identified for operating in Vietnam or Thailand?
What potential challenges have executives identified for operating in Vietnam or Thailand?
Executives have singled out hurdles such as a lack of skilled labour and inadequate infrastructure in Vietnam and Thailand. These issues could pose difficulties for new manufacturing operations there.
Q.What was the outcome of the recent trade talks between the U.S. And China?
What was the outcome of the recent trade talks between the U.S. And China?
U.S. President Donald Trump and Chinese President Xi Jinping agreed in recent trade talks not to introduce any new tariffs for 90 days. Negotiations are set to continue during this period.
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