Apple CEO Tim Cook posted a number of photos of “people in Vietnam” on social media: tasting Hanoi’s characteristic egg (yolk) coffee with musicians, and hanging out with film and television creators at the famous local Hoan Kiem Lake. Taking a photo with the iPhone’s rear camera.
Obviously, as the head of a consumer electronics giant and a world-renowned supply chain guru, Cook’s visit to Vietnam is naturally related to the layout of the industrial chain.
400 trillion VND invested in the past five years
Just when Cook arrived in Hanoi, Apple issued a statement on its official website in Vietnam, announcing that it would increase investment in Vietnam’s supply chain.
According to data provided in the announcement, since 2019, Apple’s cumulative investment in Vietnam through supply chain partners has exceeded 400 trillion VND. (Note: The latest exchange rate of RMB against Vietnamese Dong is 3466.83, Apple’s investment in Vietnam is equivalent to more than 112 billion yuan)
More importantly, Apple’s local investment is also accelerating. Also starting in 2019, the company’s annual investment in Vietnam has doubled. Currently, Vietnam’s “Apple Chain” has brought more than 200,000 jobs to the local area, including employees of Apple and local suppliers, as well as local iOS ecosystem app developers. Since 2017, the number of local software developers has tripled, and Vietnam is now among the top five producers of mobile games in the world.
It is reported that Cook will stay in Vietnam for two days during this visit. In addition to suppliers, the announcement also mentioned that Cook will meet with local students, creators and Apple users during this visit to understand how Vietnamese use Apple products. Apple will also work with suppliers to provide rainwater collection and filtration equipment to local schools, as well as provide renewable energy to schools in remote areas.
Vietnam’s “Apple Chain” is gradually growing
Apple’s investment in Vietnam can be traced back to more than ten years ago. Today, Vietnamese suppliers have become an important force in Apple’s global supply chain, and many of them are subsidiaries established in Vietnam after global manufacturing giants entered the Apple chain.
Looking at Apple’s supplier list for fiscal year 2022, global investors such as Hon Hai Precision Industry, BYD, Goertek, Intel, Lens Technology, Luxshare Precision, Samsung Electronics, and LG Display have set up factories in Vietnam to supply Apple. Very familiar manufacturer name.
Currently, Apple’s suppliers assemble iPads, wireless headphones, watches, HomePods, and some semiconductor components in Vietnam. There have been rumors that Hon Hai will assemble Macbook computers in Vietnam starting in mid-2023, but this has not been confirmed yet. Considering that iPhone sales are currently stagnant, the iPad and Mac product lines, which are about to undergo major upgrades, will also assume a more important revenue task.
As the layout of the local supply chain gradually deepens, consumer business is also following suit. The company launched the Apple online store in Vietnam in May last year, and Apple Pay entered Vietnam in August. Apple is also recruiting programmers to upgrade the Vietnamese language capabilities of its voice assistant Siri, as well as localized support for Apple Maps in Vietnam.
Vietnam is also one of the links in the expansion of Apple’s industrial chain. For Apple, in addition to common advantages such as population structure and labor costs, Vietnam borders China, the “fruit chain base camp”. The geographical convenience also makes the supply chain connection smoother.
