Apple supplier Goertek to set up $280M Vietnam subsidiary
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Apple supplier Goertek plans to invest US$280 million to set up a new subsidiary in Vietnam as it seeks to expand in the Southeast Asian market.
To be based in the northern province of Bac Ninh, it is likely to manufacture headphones, smart watches and virtual reality and augmented reality electronics products, the Chinese company said in a recent filing with the Shenzhen Stock Exchange.
It hopes to “use local resources in Vietnam to enhance the company’s overall competitiveness.”
It has been in Vietnam for 10 years with subsidiaries Goertek Vina and Goertek Technology Vina.
In 2022 the latter reported revenues of $2.5 billion and a net profit of $191 million.
Questions & Answers
Q.What kind of products is the new Goertek subsidiary in Vietnam expected to manufacture?
What kind of products is the new Goertek subsidiary in Vietnam expected to manufacture?
The new subsidiary is likely to produce headphones, smart watches, and virtual reality and augmented reality electronics products. This information was shared by the Chinese company in a filing with the Shenzhen Stock Exchange.
Q.Why is Goertek establishing this new subsidiary in Vietnam?
Why is Goertek establishing this new subsidiary in Vietnam?
Goertek is investing to expand its presence in the Southeast Asian market. The company hopes to utilise local resources in Vietnam to improve its overall competitiveness within the industry.
Q.How long has Goertek been operating in Vietnam already?
How long has Goertek been operating in Vietnam already?
Goertek has been established in Vietnam for 10 years prior to this new investment. It currently operates with existing subsidiaries named Goertek Vina and Goertek Technology Vina in the country.
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