Apple supplier Pegatron to expand Vietnam operations

1 min readJun 9, 20215:07 AM

Pegatron Corp, an assembler for Apple, Microsoft and Sony, plans to increase its investment in Vietnam for electronics production by $101 million.

Taiwan’s Ministry of Economic Affairs, which has to approve overseas investments by local companies, as saying Pegatron’s investment in Vietnam would be for the production of computers and peripherals, communications equipment and electronic components.

The company has not disclosed details of the investment.

It invested $19 million to build its first plant at the Dinh Vu Industrial Zone in Hai Phong City in March last year to produce computers, communications equipment and consumer electronic products.

It plans to build its second and third plants at a cost of $481 million and $500 million and also move its research and development center from China to Vietnam.

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What this means

Pegatron's increased investment in Vietnam, including relocating R&D from China, is a clear strategic play to de-risk its supply chain and use lower operating costs. This move, similar to other Asian manufacturers diversifying from China, pressures rivals to reconsider their regional manufacturing footprints. The comparative market context shows other companies like LivWell already making partnership moves in Vietnam. The substantial future investment planned for second and third plants suggests this is a long-term commitment, not a temporary adjustment. This move is likely to succeed in creating a more resilient and cost-effective production base. The next critical development will be the disclosure of details for these planned future plants and their operational timelines.

Wei Zhang · Retail News Asia newsroom

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