VietNamNet Bridge - If Apple’s R&D (research & development) project is implemented in Vietnam, this will give a push to Vietnam’s technology and have considerable impact on the country’s human resource development policies.


{keywords}

In March 2016, the business and technology communities were stirred up by the news that Apple was considering a plan to invest $1 billion in R&D in Vietnam by developing an Asian data center likely to be placed in Hanoi.

Later, Bloomberg reported that Apple said still did not have a plan to build a data center in Vietnam.

However, in August, reports said the center would br in the central city of Da Nang instead of Hanoi. The news was released by local authorities after a meeting reviewing foreign direct investment (FDI) in the city.

Da Nang could be an ideal place for Apple’s R&D center because of its advantages, especially openness and friendliness to businesses. The city has been leading the country in the provincial competitiveness index (PCI) the last three years.

Matthew Powell, CEO of Savills Hanoi, said that the infrastructure in Da Nang had improved considerably and flights to the region’s economic centers such as Hong Kong, Singapore, Bangkok, Tokyo and Seoul were available.  

Meanwhile, the local authorities continue to amend policies and simplify administrative procedures to lure more investors.

This would be Apple’s second investment deal in Vietnam after the establishment last November of Apple Vietnam which distributes iPhones and provides IT services. 

Gene Daniel Levoff, Apple vice president, has visited Vietnam. He is a high ranking officer who plays an important role in Apple’s deployment of activities overseas.

Official reports show that the giant spends 3 percent of its annual revenue on R&D. In 2015, for example, the firm spent $8 billion on R&D activities out of its revenue of $232 billion.

Apple has R&D centers in the UK, China, Taiwan, the US, Israel and Japan.

Analysts think that it is highly possible for Apple to set up a R&D center in Vietnam once Samsung, the biggest rival of Apple, has been increasing R&D in Vietnam. 

Most recently, the South Korean giant announced the investment of $300 million in a new project in Hanoi and $1.4 billion in a complex in HCMC.

The number of shops trading Apple imports through official and unofficial channels has mushroomed in Vietnam. However, no Apple store has opened in Vietnam.


Mai Chi