Science & Technology

Foxconn to Invest $551 Million in Vietnam

Foxconn, Apple’s Taiwan-based supplier, plans to invest about $551 million in two new projects in Vietnam’s northern coastal province of Quang Ninh.

Foxconn to Invest $551 Million in Vietnam

A message was posted on the website of the government of the mentioned province, according to which the specified company received a license for a $264 million project in the Song Khoai Amata Industrial Park. This project is related to the manufacturing of smart entertainment products. The production capacity is about 4.2 million units per year.

Foxconn in Vietnam was also granted permission to invest in a $287 million project in the Bac Tien Phong Industrial Park. This project is related to the production of equipment for smart systems.

Foxconn, whose main subsidiary Hon Hai Precision Industry is responsible for assembling most of the world’s iPhones, is currently expanding its manufacturing base. It is worth noting that this company, as part of its efforts, is scaling what can be described as the geography of its presence at the global level. Foxconn is opening new production sites in countries such as India and Vietnam.

It is also worth noting that currently there is a gradual formation of a tendency to diversify manufacturing activities outside of China. This process is driven by geopolitical reasons. Nowadays, tensions are being recorded in the space of relations between China and the United States, demonstrating a kind of progressive growth. This state of affairs already has consequences. The United States has restricted shipments of advanced chips and equipment needed to manufacture microcircuits to China. Some of Washington’s allies have also joined these measures. For example, the company ASML, which is based in the Netherlands and specializes in the manufacture of equipment for making chips, in January announced that it had received an order from the government of the mentioned country to stop supplying some of its products to China. Against the background of these realities, formed by the current configuration of the geopolitical system, many firms seek to diversify their business beyond the specified Asian state. At the same time, companies are interested in maintaining their presence, including manufacturing, in Asia, which is the largest market and a space of significant opportunities and prospects.

Against the background of the current state of affairs in the space of geopolitical relations, India and Vietnam have chances for intensive development. In this case, among other things, the prospects for the evolution of the technological sectors of the mentioned countries are implied. The tendency of diversification outside China and the desire to maintain a presence in Asia are generating opportunities for New Delhi and Hanoi.

The government of Quang Ninh Province will form a working group that will help Foxconn accelerate the process through support measures and create the most favorable conditions for the completion of construction by September next year.

In 2023, the Vietnamese leadership announced the construction of two other factories of the mentioned company. In this case, the total investment is $246 million. The mentioned production sites will specialize in making electronic components.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.