Apple’s Suppliers in Vietnam (2022 List): Where They Are and Why

Posted by Written by Mark Barnes Reading Time: 4 minutes

In the past year a number of key announcements have confirmed Apple is well and truly diversifying out of China. Apple suppliers of a range of products now have factories in Vietnam. Here’s who they are, where they have decided to set up their operations, and why.

Apple is reportedly planning to produce MacBooks in Vietnam from this year adding to a long line of products that are now being made in the Southeast Asian electronics manufacturing powerhouse.

Taiwan’s Foxconn, for example, a key Apple supplier, is set to establish a factory in Vietnam to the tune of US$270 million this year, according to Nikkei Asia. BOE Technology Group, is also set to follow suit, with Reuters reporting the Chinese display maker, which not only supplies Apple but Samsung too, is planning a US$400 million investment.

Foxconn and BOE, however, are just two companies in a growing line of Apple suppliers moving their operations south of the border.

Apple suppliers and manufacturers in Vietnam

According to Apple’s supplier list for 2022, there are currently 26 suppliers with 28 factories in Vietnam servicing the tech giant’s electronics manufacturing needs. These factories are spread around 15 provinces with the majority located in the north.

Apple manufacturing plants in Vietnam by province and region

Province Region Supplier
Bac Giang North Hon Hai Precision Industry Company Limited (Foxconn)
Bac Giang North Lens Technology Company Limited
Bac Giang North Lingyi iTech (Guangdong) Company
Bac Giang North Luxshare Precision Industry Company Limited
Bac Ninh North Biel Crystal Manufactory Limited
Bac Ninh North GoerTek Incorporated
Bac Ninh North MYS Group Company Limited
Bac Ninh North Nissha Company Limited
Bac Ninh North Samsung Electronics Company Limited
Bac Ninh North Shanghai Industrial Holdings Limited
Bac Ninh North Shenzhen YUTO Packaging Technology Company Limited
Binh Duong South Sharp Corporation
Da Nang Central Murata Manufacturing Company Limited China mainland
Dong Nai South Yageo Corporation
Ha Nam North Seoul Semiconductor Company Limited
Hai Duong North Nanofilm Technologies International Private Limited
Hai Duong North R.R. Donnelley and Sons Company
Hai Phong North Advanced Semiconductor Engineering Incorporated
Hai Phong North LG Display Company Limited
Hai Phong North LG Innotek Company Limited
Ha noi North Sumitomo Electric Industries Limited
Ho Chi Minh City South Intel Corporation
Hung Yen North NOK Corporation
Nghe An Central Luxshare Precision Industry Company Limited
Phu Tho North INB Electronics Limited
Tien Giang South Murata Manufacturing Company Limited China mainland
Vinh Phuc North Compal Electronics Incorporated
Vinh Phuc North Young Poong Corporation

Source: Apple Supplier List 2022

Why does Apple make products in Vietnam?

For electronics manufacturers like Apple, Vietnam is a very attractive alternative to China. Vietnam’s north in particular offers a number of advantages that few other locations can match. Most predominantly this is its proximity to China and the ability for manufacturers to integrate the region into existing supply chains.

There are, however, several other key benefits to electronics manufacturing in Vietnam’s north. These include transport infrastructure and the availability of low-cost, high-skilled labor.

Infrastructure in northern Vietnam

Hai Phong, for example, has the largest deep-sea port in Northern Vietnam. The provincial government is also planning to expand the port to accommodate vessels of 100,000 deadweight tonnage (DWT).

See also: Vietnam’s Hai Phong: An Industrial Gateway and Port City

Hai Phong’s port is also linked to the surrounding provinces by both road and rail. This has allowed for other parts of northern Vietnam to also develop strong manufacturing bases with industrial parks spread out across the north of the country.

For Apple, this has materialized in three key manufacturing hubs in: Bac Ninh, Bac Giang, and Hai Phong. This is also leading to a snowball effect whereby greater investment in the manufacturing sector is leading to greater investment in surrounding infrastructure facilitating smoother and easier transportation of goods.

See also: Bac Giang: An Emerging Investment Destination – Vietnam Briefing News

Labor in northern Vietnam

Vietnam also has an abundance of low-cost, yet relatively high-skilled labor. Northern Vietnam, in particular, has been an electronics manufacturing hub for years and this has allowed for workers to flourish in terms of skill development.

Hanoi, Vietnam’s capital, is also located in the north and is Vietnam’s second biggest population center. With the full gamut of amenities of any metropolis in the world, workers can have a high quality of life within its borders while also commuting to factories beyond the cities borders–many companies bus their staff into and out of the city.

See also: Salary and Wages in Vietnam

Vietnam’s role in Apple’s diversification strategy

Apple has for some time now been in the process of diversifying its supply chain. Though China-plus-one is often touted as the new paradigm, in reality, what is more likely is a China-plus-many strategy. India, for example, is shaping up as a key competitor to Vietnam for FDI.

Vietnam, however, as a manufacturing location, with its vast coastline, proximity to China and to the United States, and its youthful, low-cost workforce has distinct advantages that its competitors do not.

In this light, as part of Apple’s diversification strategy, Vietnam is set to become Apple’s largest final assembler. As a result, Vietnam, and northern Vietnam in particular, should see a much more experienced, higher-skilled workforce develop which will benefit the manufacturing sector more broadly, including new entrants into the market.

That said, choosing the right location can be difficult and understanding what each location offers may be key to a manufacturer’s success. For location selection support contact the business intelligence unit at Dezan Shira and Associates.

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