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Apple suppliers competing for workers in Vietnam

By Aiko Tanaka
1 min read
foxconn workers
foxconn workers
In this article (5)

Apple’s major Chinese suppliers are competing for Vietnamese workers as they seek to expand operations outside their country.

Young Liu, chairman of Foxconn’s flagship unit Hon Hai Precision Industry Co., told reporters in Taipei Saturday that his firm’s Chinese competitors have set up operations near its facilities in Vietnam just to poach workers.

“The move should not be condoned,” he said without naming any companies.

In recent years Foxconn’s competitors like Luxshare, GoerTek and BYD have flocked to Vietnam to avoid U.S. tariffs.

Foxconn employs around 60,000 workers in Vietnam, which is its largest manufacturing base outside China.

Liu said Foxconn would “significantly” increase the numbers of employees in Vietnam over the next one to two years.

Earlier reports said Apple would mass produce its iPads for the first time in Vietnam as part of efforts to diversify its supply chain and reduce dependence on China.

Questions & Answers

Q.

Which companies are competing for workers with Foxconn in Vietnam?

A.

Foxconn's competitors like Luxshare, GoerTek, and BYD have established operations near Foxconn's facilities in Vietnam. Young Liu stated these Chinese competitors are poaching workers from his firm.

Q.

Why are Apple's suppliers expanding their manufacturing operations in Vietnam?

A.

Suppliers are expanding in Vietnam primarily to avoid U.S. Tariffs. This move also helps Apple diversify its supply chain and reduce its dependence on China for manufacturing.

Q.

How many workers does Foxconn currently employ in Vietnam?

A.

Foxconn currently employs approximately 60,000 workers in Vietnam. This makes it their largest manufacturing base located outside of China, according to chairman Young Liu.

Q.

What product is Apple planning to mass-produce in Vietnam for the first time?

A.

Apple is planning to mass-produce its iPads in Vietnam for the first time. This initiative is part of wider efforts to diversify its supply chain and lessen reliance on China.

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