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Pegatron plans to open factories in Vietnam on behalf of Apple

enero 22, 2020

Apple suppliers such as Foxconn have already increased production outside of China. Now it's Pegatron's turn to see Vietnam as a possible place to open new factories.

Pegatron Vietnam

The move would help Pegatron, one of Apple?s largest suppliers, to diversify production currently concentrated in China. According to a Bloomberg report, the company plans to build a new facility in northern Vietnam. She also rented a facility in Haiphong City.

Pegatron will therefore follow in the footsteps of Foxconn, Wistron, GoerTek, Compal Electronics and Luxshare Precision which have already extended their production in Vietnam to produce components intended for Apple devices.

The best vocational training in Vietnam has helped improve the quality of its labor pool to get closer to the level of China , said Bloomberg a researcher with the Chung-Hua Institution for Economic Research Taipei. Lee also noted that the Vietnamese government is trying to facilitate business investment in Vietnam.

Pegatron will not manufacture an iPhone in its factories in Vietnam initially. However, this decision is absolutely in line with an earlier request from Apple. Last year, Apple asked its major suppliers to try to shift production from China to Southeast Asia due to the growing trade war between China and the United States. Although the problem is sort of resolved, not relying entirely on China for production will benefit companies like Apple.