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(DTiNews) – Following a notable 2-day visit to Vietnam, Apple CEO Tim Cook has expressed eagerness to bolster investment activities within the country, particularly focusing on the development of high-tech products.
Embracing Vietnam’s Potential
On April 15th, Apple CEO Tim Cook embarked on his journey to Vietnam, marking his first visit to the country since his meeting with Prime Minister Pham Minh Chinh in the United States back in September 2022.
Upon arrival, Apple issued a statement reaffirming its commitment to Vietnam, outlining plans to increase spending with Vietnamese suppliers and highlighting advancements in its clean water initiative for local schools.
In Tim Cook’s remarks, he praised Vietnam as a dynamic and beautiful country, emphasizing Apple’s dedication to building deep connections and fostering prosperity in the regions where it operates. Cook’s sentiments underscore Apple’s recognition of Vietnam’s growing importance within its global operations.
“There is no place like Vietnam, a dynamic and beautiful country. I’m thrilled to be here connecting with students, creators, and customers, and to learn more about the diversity of how they use our products to do extraordinary things”
“At Apple, we always strive to build deep connections and bring more benefits to the people in the places where we operate. From cooperating with local suppliers to supporting clean water projects and educational opportunities, we are committed to enhancing our connection in Vietnam” – said Tim Cook, Apple’s CEO.
Strengthening Ties with Vietnam
During his visit, Tim Cook met with Prime Minister Pham Minh Chinh to discuss avenues for enhancing cooperation between Apple and Vietnam. The Prime Minister reiterated Vietnam’s commitment to fostering a fair and transparent business environment, particularly emphasizing support for American businesses and investors. Cook, in turn, reaffirmed Apple’s desire to expand its supply chain within Vietnam, highlighting the country’s strategic significance.
In an interview with Dan Tri reporter, Mr. Vu The Binh, Vice Chairman and General Secretary of the Vietnam Internet Association, commented that CEO Tim Cook’s visit once again reaffirms Apple’s interest in Vietnam and their commitments to expanding their supply chain in the country.
“We believe that this visit brings many positive aspects to Vietnam, both in terms of opportunities for businesses to participate in the supply chain and in increasing confidence for foreign investors in the business environment in Vietnam.
“We also believe that the Vietnamese government will continue to fulfill its commitments and policies to attract foreign investment in Vietnam, aiming to promote economic development and contribute to increasing the technological value of Vietnamese enterprises”, shared Mr. The Binh.
Over the recent years, Apple has steadily augmented its manufacturing footprint in Vietnam, with products like AirPods, AirPods Pro, iPad, MacBook, and Apple Watch being assembled in the country. Ivan Lam, an analyst at Counterpoint Research, stated that “Vietnam has always played an important and strategic role, with the potential to become one of the next global manufacturing hubs. Apple’s recent supply chain map has demonstrated the capabilities of Vietnam’s manufacturing facilities in assembling iPads and expanding production scale”.
Continuing its trajectory, Apple has been actively bolstering its presence in Vietnam. In a strategic move, the company launched its online store tailored to the Vietnamese market in mid-May 2023, equipped with Vietnamese-speaking experts to cater to local consumers.
Vietnam, recognized as an emerging market with a substantial Apple device user base, boasts nearly 20 million iPhones currently in use. Mr. Nguyen Lac Huy, a representative of the CellphoneS communication system, pointed out the sustained double-digit growth of the genuine iPhone market in Vietnam, underscoring the result of long-term investment and market enhancement.
“For many years, the genuine iPhone market has experienced continuous double-digit growth and ranks among the top emerging markets with the best growth rates. From a business perspective, the recent emergence of key players is the result of a long-term investment and market upgrade process over many years,” Mr. Huy said.
Apple’s Engagement with Prime Minister Pham Minh Chinh
On April 16th, Apple’s CEO had a meeting with Prime Minister Pham Minh Chinh and visited the Government Headquarters. The Prime Minister highly appreciated the significant contributions of Apple and its partners to Vietnam’s development, including bringing Vietnam deeper into Apple’s global supply chain, which is increasingly crucial in developing markets for Apple products.
The Prime Minister highlighted the positive trajectory of the Vietnam-United States relationship, noting the recent elevation to a Comprehensive Strategic Partnership. This milestone lays the groundwork for enhanced cooperation across various sectors, particularly in science and technology, innovation, high-quality human resource training, semiconductors, and digital transformation.
In a proactive move, the Head of the Government urged Apple to advocate for Vietnam’s market economy status recognition by the US Government and Congress, aiming to facilitate Vietnam’s removal from the list of countries restricted in high-tech exports.
Emphasizing Vietnam’s commitment to attracting foreign investment, the Prime Minister assured that the country would foster a conducive environment and provide comprehensive support for foreign enterprises to thrive sustainably within Vietnam’s borders.
Expressing optimism for deeper collaboration, the Prime Minister urged Apple to expand its investment activities in Vietnam, fostering greater integration into Apple’s global supply chain, production chain, and value chain, with an emphasis on mutual benefits and shared risks.
Prime Minister’s Proposals and Vision for Collaboration
Prime Minister Pham Minh Chinh extended the Vietnamese Government’s readiness to collaborate with Apple’s investment and expansion efforts in Vietnam. He proposed that Apple enhance support and consultancy for Vietnam’s development in science, technology, and innovation; promote cooperation and linkage with Innovation Centers and software parks in Vietnam; and consider establishing a research and development (R&D) center at the National Innovation Center.
Furthermore, the Prime Minister envisioned Apple’s involvement in providing scholarships for Vietnamese students in key fields such as information technology, programming, electronics, semiconductors, and artificial intelligence (AI). He also encouraged Apple to contribute to Vietnam’s efforts in training high-quality engineers, including a target of 50,000 engineers in the semiconductor industry.
Apple CEO’s Perspective and Commitments
During the discussion, Apple’s CEO, Tim Cook, emphasized the significant footprint Apple has established in Vietnam, with two legal entities collaborating with over 70 factories as manufacturing partners, engaging 40 distribution partners, and operating more than 5,000 authorized stores across the country. This expansive network has facilitated employment for approximately 200,000 individuals in Vietnam, underscoring Apple’s commitment to fostering economic growth and opportunity in the region.
Despite these achievements, Cook emphasized the potential for further collaboration and growth opportunities in Vietnam. He expressed Apple’s eagerness to engage with the proposed Task Force aimed at promoting investment and expanding operations in Vietnam, aligning with the vision outlined by the Prime Minister. Cook reiterated Apple’s commitment to strengthening investment activities in Vietnam, with a particular focus on the development of high-tech products and applications for the global market, thus contributing to the advancement of Vietnamese products both domestically and internationally.
Furthermore, Cook affirmed Apple’s readiness to collaborate with Vietnam in its transition towards achieving net zero emissions by 2050, showcasing the corporation’s dedication to environmental sustainability. Additionally, he highlighted Apple’s commitment to promoting Vietnamese culture to a global audience through its products and applications on the Apple App Store, thereby contributing to the preservation and dissemination of cultural values on a global scale.
