Will iPhones be made in VN after Foxconn takeover of Microsoft Mobile Vietnam?

VietNamNet Bridge - “We now can hope the production of iPhone products will occur in Vietnam in the future, now that Vietnam makes Samsung phones,” said Vu Duc Quyet, director of the Bac Ninh provincial Industry and Trade Department.

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On May 18, Microsoft announced its deal of selling the feature phone manufacturing division to FIH Mobile Ltd, a subsidiary of Foxconn and HMD Global, at $350 million.

Microsoft’s press release says FHI Mobile Ltd will receive Microsoft Mobile Viet Nam, a factory in Bac Ninh province, Vietnam.

Quyet told reporters that if the deal is made, this will be good news for Vietnam, because Foxconn is one of the largest electronic parts manufacturer in the world. 

It is expected that it would hire Vietnamese workers for its production and business activities in Vietnam, while Vietnamese would have opportunities to access advanced technologies.

It is a big partner of Apple, providing components and accessories to make the iPhone and iPad. It is also a partner of many other manufacturers, including Nokia and Microsoft.

Once the deal is wrapped up, Quyet said, Vietnam’s market image would be better, while the electronics industry would have better opportunities for development.

It is expected that it would hire Vietnamese workers for its production and business activities in Vietnam, while Vietnamese would have opportunities to access advanced technologies.

According to Quyet, Foxconn began building factories and other items in Bac Ninh, Bac Giang and some other provinces in Vietnam in March 2007.

There are many workshops in Bac Ninh province, and Foxconn’s production there has been operating well. 

Foxconn not only provides components to make mobile phones, but also car electronic parts and household-use appliances, such as washing machines, fans and air conditioners.

“The purchase of Microsoft Mobile Vietnam is part of their plan to expand production and diversify products, which allows it to target many groups of partners,” he said.

He went on to say that Vietnam will become the ‘aiming point’ for many foreign investors. Besides LG, Samsung and Nokia, it may also catch the eyes of Apple.

An analyst, agreeing with Quyet, said that it won’t be a surprise if Apple makes an investment in Vietnam.

“Vietnam has a cheap but high-quality labor force,” he explained. “Meanwhile, foreign investors can enjoy very attractive investment incentives.”

The analyst said in principle, investors will make investment in the places where they can expect optimal profit. Foxconn must have its reasons to leave China, and big advantages in Vietnam could be a reason.

Quyet said Vietnam could hope that Apple would invest and organize production of Apple in Vietnam. 

Foxconn specializes in making iPhone components for Apple, and its purchase of Microsoft Mobile Vietnam may be a step in the group’s plan to expand its operation.


Dat Viet


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