TIm Cook Says Apple Plans to Increase Investments in Vietnam
The Apple CEO visited Hanoi, met with the Prime Minister, and discussed plans for expansion as part of the company's China-Plus strategy
Apple CEO Tim Cook discussed plans to further boost investments in Vietnam. This follows the company's recent announcement of increased spending on suppliers in the Southeast Asian manufacturing hub. Cook shared these plans during a meeting with Prime Minister Pham Minh Chinh, according to a statement by Vietnam’s government.
Vietnam has emerged as an important hub for Apple as it tries to diversify its supply chains away from China, where most of its smartphones and tablets are manufactured. This China-Plus strategy - building hubs in other Southeast Asia countries for risk mitigation - has already been adopted by UPS, Intel, and other major companies.
The company began exploring options outside of China due to a series of COVID-19-related disruptions. These disruptions reached a peak in 2022 when a factory owned by one of Apple’s main suppliers, Foxconn, was shut down due to a coronavirus outbreak amidst China’s zero-COVID policy. Additionally, reports of poor labor conditions exacerbated the situation. These events reportedly resulted in significant financial losses for the company, estimated at $1 billion per week
Cook praised Vietnam, calling it a “vibrant and beautiful country.” The Apple CEO arrived in Hanoi on Monday for a two-day visit, during which he engaged with students, programmers, and content creators.
According to the report in Vietnam's state paper, Apple, which opened its first Vietnamese factory over a decade ago, has already spent $16 billion through its supply chain and has created over 200,000 jobs.
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