Foxconn to Set up iPhone Factory in Vietnam Amidst Trade Tension
Foxconn views Vietnam as a secured location to continue production outside the US amidst the ongoing US-China trade war
As per a Vietnamese media report, Foxconn, the world’s biggest electronics contract manufacturer and a key Apple supplier, is considering Vietnam as its next hub for setting up a manufacturing facility for iPhones. The move has come amidst the rising trade tension between the US and China. Apple’s biggest iPhone assembler, Foxconn has reportedly selected Vietnam and Thailand as its preferred locations to secure an additional production base outside the country to avoid the trade war’s impact.
iPhone manufacturing unit
The Vietnam Investment Review said that Foxconn and Hanoi residents were in talks to set up an iPhone manufacturing unit in Vietnam. It cited Vu Tien Loc, Head, Vietnam Chamber of Commerce and Industry, who raised the matter with Prime Minister Nguyen Xuan Phuc at a meeting held in November.
Foxconn on US-China trade
Terry Gou, Chairman, Foxconn Technology group said that the US-China trade war could continue up to 5-10 years. He, reportedly, added that the economic and technological competition between the US and China would lead to a shift from globalisation towards polarisation.
According to Gou, US views China as a strategic rival and will build barriers to prevent it from acquiring key technologies and components. This, in turn, will compel China to change the way it produces and develops technology.
In trade talks on Saturday, US President Donald Trump and Chinese President Xi Jinping agreed not to introduce any tariffs for 90 days as negotiations continue.