Taiwan's Foxconn Is Considering Opening an iPhone Factory in Vietnam

Taiwan's Foxconn Is Considering Opening an iPhone Factory in Vietnam
Credit: Reuters / TPG
Why you need to know

The Taiwanese technology giant previously expressed an interest in evading the US-China trade war.

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The Hanoi People's Committee is currently in talks with Foxconn Technology Group, the Taiwanese multinational electronics manufacturing company and one of Apple's biggest assemblers, to open an iPhone manufacturing facility in Vietnam, according to a Vietnam Investment Review report.

The information was revealed by Vu Tien Loc, director of the Vietnam Chamber of Commerce and Industry (VCCI), during a meeting with Prime Minister Nguyen Xuan Phuc, the news source says.

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Credit: Zing
Foxconn may be heading to Vietnam to avoid US-China tensions.

“We are discussing the possibility of this with Foxconn,” Loc told Reuters.

The Hanoi People's Committee Chairman Nguyen Duc Chung and Foxconn declined to comment on the news.

Most iPhones are assembled by Foxconn Group and Pegatron in their factories in Shenzhen and Shanghai. A smaller number get assembled in Brazil and India to avoid import taxes in these countries, as the iPhones will be considered domestic products.

Foxconn, the trading name of Hon Hai Precision Industry (鴻海精密), entered Vietnam in early 2007 with factories in Bac Giang, Bac Ninh and other provinces.

In 2010, Foxconn gained widespread attention after approximately 18 of its employees attempted suicide, which resulted in a minimum of 14 deaths. The news raised concerns over the giant's labor practices.

Earlier this year, the Apple assembler said the trade war between the U.S. and China was the largest obstacle it faced. On Saturday, U.S. President Donald Trump and Chinese President Xi Jinping agreed not to introduce any new tariffs for 90 days.

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Credit: Reuters / TPG
A man takes photo with his Apple's iPhone next to Terry Gou (郭台銘), founder and chairman of Foxconn.

Read Next: Foxconn Comes Under Pressure Over Wages as Shenzhen Urban Village Rents Rise

The News Lens has been authorized to republish this article from Saigoneer, an English-language digital platform covering urban development, history, food, culture and the arts in Saigon (Ho Chi Minh City) and throughout Vietnam. The original can be found here.

TNL Editor: Nick Aspinwall (@Nick1Aspinwall)

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