Whether Apple to build nest in Vietnam?
Foxconn’s rush expansion in Vietnam raise nosy that whether Apple will choose the country as the place to build nest.

Foxconn has issued the plan to build three accommodation projects for workers in Bac Giang, Bac Ninh and Vinh Phuc, showing clear signs that this group is expanding its operation in Vietnam.

These three projects are Golden Park social-housing project in Que Vo district of Bac Ninh worth VND2.9 trillion, VND3.4 trillion Van Trung project in Viet Yen district of Bac Giang and housing and public service project worth VND1.06 trillion in Binh Xuyen district of Vinh Phuc.

According to the company, these projects are to deal with the urgent demand on accommodation for its workers. At presents, the groups recruits approximately 50,000 workers.

However, there is opinion that this move is not to supply the accommodation for existing workers only, the main purpose is to prepare housing for upcoming recruitment for its expanded projects.

In reality, there are bases for this forecast because in the documents submitted to Vietnam’s authorities, Foxconn noted that it is proposing to develop 600-ha industrial zone (IZ) in Bac Giang, simultaneously implement the second phase of Binh Xuyen 2 IZ with the scale of 70 ha.

Previously, the group used to commit to invest $5 billion in Vietnam after having small-scale projects in Bac Ninh and Bac Giang. In February 2008, the group was granted the investment certificate to implement the mobile phone manufacturing project worth $200 million and 485 – ha Binh Xuyen 2 IZ worth $25 million.

However, the mobile phone manufacturing project was failed and the scale of Binh Xuyen 2 was adjusted to 45.6 ha.

Apple will arrive to Vietnam?

In front of Foxconn’s move, there is a question that whether Apple will also establish manufacturing facility in Vietnam?

While mobile phone manufacturers namely Samsung, LG directly build plants in Vietnam, Apple selects a different way namely ordering from outsourcing companies and Foxconn is an example.

To date, there is no official information affirming that Apple with select Vietnam as the place to manufacture and assemble iPhone and iPad, excluding parts for these products. There is also information that Samsung Display in Bac Ninh investment technology line to produce screen for iPhone.

Deputy chairman of Apple in an online meeting with representative of Ministry of Planning and Investment at early this year shares plans to increase order volumes from outsourcing partners.

Previously, this group had plans to develop a data centre in Vietnam with the scale of $1 billion, but it has yet to mentioned about this plan so far.

Foxconn’s rush expansion in Vietnam raise nosy that whether Apple will choose the country as the place to build nest.

Vietnam Investment Review