Apple CEO Tim Cook Met With Prime Minister of Vietnam to Discuss Manufacturing

[MacRumors]

Apple CEO Tim Cook this week met with Vietnam Prime Minister Pham Minh Chinh at the Apple Park campus in Cupertino, California, where the two reportedly discussed trade, investment, and finance.

According to Vietnamese news site SGGP (via iMore), Chinh said that the Vietnamese Government wants to create a "fair, transparent, and market-based business environment" to enable U.S. firms and investors to gain ground in Vietnam.

Vietnam has 31 companies that employ 160,000 workers that are producing and assembling electronic parts and equipment for Apple products, and Chinh asked Cook to step up Apple's business activities in Vietnam.

Cook in turn thanked Vietnam for creating a "favorable business environment for Apple's operations," and he told Chinh that Apple does indeed want to extend its supply chain in the country.

Over the course of the past couple years, reports have suggested that Apple is shifting more of its production to countries like Vietnam and India in order to diversify its supply chain and manufacture more products outside of China. Apple has started assembling some AirPods Pro, iPads, and HomePod mini devices in Vietnam.

Apple supplier Foxconn in January 2021 was granted a license to create a $270 million plant in Vietnam after Apple asked the company to move some iPad and MacBook assembly from China to Vietnam.

Article Link: Apple CEO Tim Cook Met With Prime Minister of Vietnam to Discuss Manufacturing

 

[ThunderSkunk]

Yeti Cycles waited to find a country willing to do a good enough job of treating their workers ethically before outsourcing that it wouldn't be a downward move. Took them 25 years longer than the rest of the racing bike industry to find one that'd reach parity with American mfg standards, and they found it in Vietnam. Now when I ride, I look down and see the "Made in Vietnam" insignia proudly painted on to the seat tube, not hidden underneath out of shame like some made in china sticker, and I'm happy that a good chunk of the premium I paid went to the good people of sunny Vietnam.

 

[Sedulous]

Vietnam has a totally different vibe than China. Optimism instead of animosity.

 

[Mr. Dee]

I encourage it, it just makes so much sense. As China moves out of developing country status and a larger middle class is created, the cost manufacturing and finding the labor to do it is gonna become higher. India and Vietnam will benefit from this. Hopefully Africa can get some of the love too since so many rare earth minerals are sourced from there.

 

[TheYayAreaLiving 🎗️]

At this point. Any country is better than China. Go 🇻🇳

 

[jz0309]

good, it will start slowly though ... Vietnam is still building its infrastructure

 

[Leon Ze Professional]

This has been a long time coming! Make it happen, Apple.

 

[mactactic]

Good move as much as I would like to US manufactured Apple products Vietnam makes sense, Vietnam as of late has no love for China.

 

[winxmac]

Will it make it cheaper in countries like the Philippines? Or is the US pricing not including the tax yet on Apple website?

 

[Jim Lahey]

If China eventually invade Taiwan and the west is dumb enough to impose sanctions then Apple could be crippled overnight. Diversifying production partners is a smart move by Cook but they better hurry up ?

 

[joecomo]

Thats a good thing Apple - keep your options open

 

[anthogag]

If Western companies can move out of Russia, Apple can significantly reduce its reliance on China. ?

 

[now i see it]

Designed in California. Manufactured anywhere but the USA

 

[JPack]

I guess people don't realize Apple's largest partner in Vietnam is Luxshare-ICT. Guess who owns Luxshare? Can you guess which new company is assembling iPhone 14 in addition to Foxconn?

Non-business people think moving out of China is possible, but what's actually happening is China is moving up the value ladder with Luxshare, BOE, and CATL.

 

[SSDGUY]

"fair, transparent, and market-based business environment" Is this still a thing in the world?

 

[Corsig]

Wish they could find a way with their billions to develop more jobs in the US but anywhere other than China is a good step

 

[Danoc]

It will be great for south east Asia to have that kind of supply chain. I think Samsung is already making most of its smartphones for the world in Vietnam.

 

[tcphoto1]

Spend your money where it’s appreciated, value found and Intellectual Properties respected.

 

[iBluetooth]

Will it make it cheaper in countries like the Philippines? Or is the US pricing not including the tax yet on Apple website?

Probably more about diversification. Like now during this Covid lock down in China, which is probably causing a lot of lost sales for Apple.

 

[44267547]

Wish they could find a way with their billions to develop more jobs in the US but anywhere other than China is a good step

Well, considering that there is a massive labor shortage where people don’t want to work, I highly suspect it wouldn’t benefit Apple to start trying to ‘create jobs’, when almost every industry can’t even locate viable/prospective employees who are willingly to work on a consistent basis. The first hurdle Apple needs to be clear, is actually having more stabilization in our economy until then, It be a bad business move at this point for Apple until the workforce can settle.

 

[haunebu]

We can make computers in America again, too. The G4 Cube sitting next to my M1 MacBook Pro was made here, and many Mac Pros also thereafter. Of course, Tim would have to pay Americans a living wage in that case...

 

[huge_apple_fangirl]

Great idea. Vietnam is the next Asian Tiger!

 

[RalfTheDog]

I encourage it, it just makes so much sense. As China moves out of developing country status and a larger middle class is created, the cost manufacturing and finding the labor to do it is gonna become higher. India and Vietnam will benefit from this. Hopefully Africa can get some of the love too since so many rare earth minerals are sourced from there.

Africa would be a fantastic move. I would also like to see more manufacturing in Mexico, Central and South America. Longer term, I would like to see more educational investment in these regions, so they can get more of the design and software jobs.

 

[RalfTheDog]

At this point. Any country is better than China. Go 🇻🇳

Any country other than perhaps Russia.

 

[bumpylumpy]

Designed in California. Manufactured anywhere but the USA

Well, given that Apple can't even get their staff to work in their own beautiful offices in California, I suspect getting manufacturing here is total non-starter.