Foxconn invests $300 million more in Vietnam

Apple supplier Foxconn has signed a memorandum of understanding with Vietnamese developer Kinh Bac City to expand its existing manufacturing facility in the north of the country to diversify and boost production with an additional investment of $300 million, Tuoi Tre newspaper wrote. The Taiwanese company, whose formal company name is Hon Hai Precision Industry, plans to construct a new factory on a plot spanning over 50.5 hectares in Bac Giang province northeast of Hanoi which would generate 30,000 local jobs and boost the regional economy, the report said. Foxconn did not specify which type of products would be produced…

Apple supplier Foxconn has signed a memorandum of understanding with Vietnamese developer Kinh Bac City to expand its existing manufacturing facility in the north of the country to diversify and boost production with an additional investment of $300 million, Tuoi Tre newspaper wrote.

The Taiwanese company, whose formal company name is Hon Hai Precision Industry, plans to construct a new factory on a plot spanning over 50.5 hectares in Bac Giang province northeast of Hanoi which would generate 30,000 local jobs and boost the regional economy, the report said.

Foxconn did not specify which type of products would be produced at the new factory nor its capacity, but as one of the largest Apple suppliers it will most likely be more Apple devices.

Regional shift in manufacturing

The company, which has been manufacturing in Bac Giang for 15 years, has recently moved part of its iPad and AirPods production to Bac Giang’s Quang Chau Industrial Park, according to the report.

The move follows another recent reports that Foxconn has started test production of the Apple Watch and the MacBook in northern Vietnam.

Analysts say that this has mainly to do with Apple aiming to reduce its dependency on China – amid geopolitical risks and the country’s ongoing clashes with the US – and diversify its supply chain to other countries.

Overall, Foxconn has invested $1.5 billion in Vietnam as of last year, according to Vietnamese government figures.