When Apple comes to Vietnam and FDI flow starts moving

Apple is making clearer signals in the production of components and products in Vietnam, opening up opportunities for Vietnam to participate more deeply in the global value chain.

When Apple comes to Vietnam and FDI flow starts moving

Apple plans to increase its orders for component suppliers in Vietnam.

In recent days, the information that Apple produces wireless earphones (Airpods) in Vietnam has been a cause for happiness. This is the result of a long collaborative journey between Vietnamese agencies and this globally renowned maker of smart devices.

With little information about Apple’s upcoming investment in Vietnam revealed, many people mistakenly believe that Apple will set up a factory in Vietnam like Samsung did. However, Apple's operating model in Vietnam is different from that of Samsung. Apple does not directly manage any manufacturing plant. Instead, it cooperates with suppliers around the world to produce and assemble Apple products. These suppliers are called Original Equipment Manufacturer (OEM).

Apple has more than 1,200 suppliers worldwide, mainly in Asia. Surprisingly, according to a source of VietNamNet, there have been dozens of such suppliers in Vietnam for a long time, including "familiar names” like Foxconn and Samsung. In particular, Samsung Display produces screens for Apple.

Therefore, the increasing presence of Apple in Vietnam may be the increase in orders placed for suppliers in Vietnam or calling for foreign suppliers to open factories in Vietnam.

That is why in March 2019, Apple opened an executive office to manage the supply chain in Vietnam.

In any case, Apple’s increasing interest in the supply chain from Vietnam is good news, demonstrating Vietnam's efforts over the years to be on the world technology map, to become a "base of electronics production" of many big brands such as Samsung, LG, Intel ... That is an achievement, a spectacular shift of Vietnam in attracting quality FDI inflows, even though Vietnam can in fact do better and make better use of the pervasive value of this capital inflow.

But it is not easy for Apple to enter the Vietnamese market. Apple also has many considerations, calculations and concerns, most notably in the matter of procedures, and business investment environment.

When senior leaders of Apple worked with Vietnam, they expressed great concern about customs procedures when it takes more hours in Vietnam than in international practice to fulfil more procedures to clear goods. Apple has proposed being designated a special priority enterprise regime under the official program of the Vietnam Customs that many other businesses are enjoying. Apple has made this proposal several times and it was rejected by the customs agency for many reasons.

 

Apple's story shows that the opportunity for Vietnam to receive large capital flows from multinational corporations is getting closer. In this global trade movement trend, Vietnam can become an important link.

Four major economies including Australia, Japan, India and the United States have officially resumed four-party dialogue after 10 years of interruption and upgraded it to a dialogue of foreign ministers. On March 20, the "Diamond Quartet" invited three other countries including Vietnam, South Korea and New Zealand to join the dialogue. This new group was called by the Indian Times as the "QUAD Plus”. This group is fueling international media with the possibility that the US is trying to move the supply chain out of China as soon as possible.

Vietnam has been named in the "QUAD Plus”. The opportunity for Vietnam to contribute more to the global value chain is closer than ever. The problem is whether we can change to seize that opportunity or not. This needs a change in mindset and changes to create a more favorable and more open investment environment for businesses and partners.

The concerns of Apple in discussions with Vietnamese government agencies are probably also the concerns of many other businesses. In many conferences and seminars at all levels, many businesses and associations have called for that change. Vietnam has also listened to and changed, but the change is still beyond expectation.

Vietnam will have to do a lot of work to take a long step into the global value chain. After Samsung, LG, Intel ..., Apple will set a new era for capital inflows into Vietnam. If Apple successfully enters Vietnam, large corporations will also choose Vietnam as a destination, from which "made in Vietnam" products will go to the world.

Luong Bang

Future Apple Store may fail to bite into retailers

Future Apple Store may fail to bite into retailers

Rumours of Apple setting up a manufacturing base and opening its first Apple Store in Vietnam have sent consumers into frenzy, but local tech retailers and parallel importers do not seem particularly worried

Technology giant Apple will produce millions of AirPods in Vietnam

Technology giant Apple will produce millions of AirPods in Vietnam

US-based technology giant Apple will allegedly produce millions of wireless earphones called AirPods in Vietnam from this quarter – a clear move to diversify its manufacturing operations.

 
 

Other News

.
Strengthening tools to protect children in cyberspace
Strengthening tools to protect children in cyberspace
FEATUREicon  05/07/2021 

The strong development of the Internet and social networks has made children become digital citizens early, which brings many benefits in the service of learning, entertainment, and enhanced social interaction.

Vietnam railways corporation incurs big losses, thousands of workers take leave
Vietnam railways corporation incurs big losses, thousands of workers take leave
FEATUREicon  06/07/2021 

The Vietnam Railways Corporation (VNR) is experiencing its toughest days in history as many trains have stopped running during Covid-19. Many workers have had to take unpaid leave.

Fighting for $52 billion market, int’l groups flock to Vietnam
Fighting for $52 billion market, int’l groups flock to Vietnam
FEATUREicon  05/07/2021 

Despite the effects of the Covid-19 pandemic, the e-commerce industry still witnessed explosive growth in 2020.

Ministers of Home Affairs explain new circular on certificates for civil servants
Ministers of Home Affairs explain new circular on certificates for civil servants
FEATUREicon  05/07/2021 

The burden of certificates has been compared to “sub-licenses”, “a miserable and expensive journey”, and “buying certificates” by many National Assembly deputies.

Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
FEATUREicon  05/07/2021 

Access to Covid-19 vaccine sources has been difficult due to a scarcity of supply in the world. What solutions will Vietnam need to buy enough Covid-19 vaccines for its people?

Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
Vietnam's Covid-19 vaccine strategy: speeding up vaccinations with 1 million doses per day
FEATUREicon  04/07/2021 

Access to Covid-19 vaccine sources has been difficult due to a scarcity of supply in the world. What solutions will Vietnam need to buy enough Covid-19 vaccines for its people?

'Confessions' of Tinder scammers
'Confessions' of Tinder scammers
FEATUREicon  04/07/2021 

No sooner had the appropriation of billions of Vietnamese dong been discovered than the fraudsters suddenly disclosed their swindles, which were quickly done thanks to the trust and affection they easily gained from the victims.

Vietnam welcomes third FDI wave
Vietnam welcomes third FDI wave
FEATUREicon  04/07/2021 

Vietnam is committed to developing its role in the production value chain through FDI and has been preparing for many years to improve the qualifications of its workers.

Victims of romance scams left desperate
Victims of romance scams left desperate
FEATUREicon  03/07/2021 

With nothing obtained and losses incurred, the victims of the dating app scam have been left in the depths of despair.

Youth prefer freelancing, working from anywhere
Youth prefer freelancing, working from anywhere
FEATUREicon  03/07/2021 

As technology is developing at a lightning speed, more and more young people want to give up their dedicated desks in offices and work from anywhere in the world.

Ben Tre tries to 'make impossible possible' by digitizing
Ben Tre tries to 'make impossible possible' by digitizing
FEATUREicon  06/07/2021 

When talking about how digital transformation should proceed in a poor country, Ben Tre provincial People’s Committee Tran Ngoc Tam had a practical view: transformation will succeed only if people understand it and get benefits from it.

Vietnam makes Covid-19 treatment drug, awaits trial results in other countries
Vietnam makes Covid-19 treatment drug, awaits trial results in other countries
FEATUREicon  02/07/2021 

Scientists need to study and master the technology and start a pilot small production process of a treatment drug for Covid-19 before organizing production on industrial scale, Phan Van Hieu, a respected pharmacist, said.

Betting online is easy
Betting online is easy
FEATUREicon  03/07/2021 

While legal football betting businesses remain "immovable", illegal betting sites have been bustling. Billions of dollars go abroad every year to football bets.

Home-sharing, shared-kitchens boom during pandemic
Home-sharing, shared-kitchens boom during pandemic
FEATUREicon  03/07/2021 

Booking a room on the phone, ordering food from an app and shopping online with smart lockers, people are increasingly using technology, changing the habits of consumers.

Vietnam offers free vaccinations, considers paid vaccinations after reaching herd immunity
Vietnam offers free vaccinations, considers paid vaccinations after reaching herd immunity
FEATUREicon  02/07/2021 

Along with free vaccinations for priority groups, the Ministry of Health (MOH) is planning to activate the expanded program on immunization (free of charge) and the vaccination that requires payment.

Social media corrupting our behavior: official (Part 2)
Social media corrupting our behavior: official (Part 2)
FEATUREicon  02/07/2021 

The utility of social networks is depraving the behavior of many people. Be wary of negative effects from the ‘virtual’ world, said Nguyen Thanh Lam, Director of the Authority of Press under the Ministry of Information and Communications (MIC).

GDP growth rate high in H1, but many people, businesses still struggling
GDP growth rate high in H1, but many people, businesses still struggling
FEATUREicon  02/07/2021 

Vietnam had a positive GDP growth in the first half of the year, and budget collections were beyond expectations. But there is still a dark side to Vietnam’s economy.

Phu Tho student wins gold medal at international physics competition
Phu Tho student wins gold medal at international physics competition
FEATUREicon  02/07/2021 

Tran Duong Chinh, a 12th grader majoring in physics of the Hung Vuong High School for the Gifted, has become the first student from Phu Tho province to win a gold medal at the European Physics Olympiad (EuPhO).

Vietnam's growth potential lies in the digital economy
Vietnam's growth potential lies in the digital economy
FEATUREicon  01/07/2021 

The digital economy in Vietnam accounts for about 8.2% of GDP. The development potential of the Internet and digital economy components is still quite large. 

Artists take extra jobs to earn a living during pandemic
Artists take extra jobs to earn a living during pandemic
FEATUREicon  01/07/2021 

Since the Covid-19 outbreak has caused entertainment activities to be suspended, artists have had to take many different jobs.

 
 
 
Leave your comment on an article

OR QUICK LOGIN