FDI companies in Vietnam have consistently played a crucial role in contributing to Vietnam's economy and its growth. Since the authorization of foreign investment in 1988, Vietnam FDI has been pivotal in transforming the country into a highly appealing destination for international investors. The country’s robust growth in securing FDI has garnered positive feedback from […]
FDI companies in Vietnam have consistently played a crucial role in contributing to Vietnam's economy and its growth. Since the authorization of foreign investment in 1988, Vietnam FDI has been pivotal in transforming the country into a highly appealing destination for international investors. The country’s robust growth in securing FDI has garnered positive feedback from […]
Increasingly important position in the production supply chain
According to the list of Apple’s global suppliers released in 2022, 25 of its supplier firms are establishing factories in several provinces in Vietnam, including familiar names like LG Display, Samsung Electronics, Advanced Semiconductor Engineering Technology, Murata Manufacturing and so on. Statistics from Reuters reported a noticeable increasing trend in the presence of Vietnam as a prime location for Apple’s suppliers, from 2.2% in 2019 to 3.7% in 2021. This indicates that Vietnam is growing as a bright spot for this giant’s strategy for supply chain diversification. DigiTimes estimated that 20% of iPads and Apple Watches, 5% of MacBooks and 65% of AirPods will be produced in Vietnam by 2025.
In June 2023, Compal Electronics - an important iPad and Apple Watch manufacturing contractor - invested in the Lien Ha thai Industrial Park project, specializing in manufacturing, processing and assembling electronic components and electrical products. The project attracted 260 million USD of registered investment capital, with a projected revenue of 1.2 billion USD in 2029 and 6.8 billion USD in 2037.
In the meantime, Foxconn - among the largest contractors of Apple - is implementing its plan to allocate iPad and MacBook production to Vietnam, creating more than 60,000 jobs for the Vietnamese labor market, with an announced investment of 270 million USD.
Increasing potential as a consumer market
Vietnam nowadays is not only an important manufacturer of MacBook and Airpods, but also a rising market that has received much attention from Apple. In May 2023, after the first online Apple store was opened in Vietnam, CEO Tim Cook tweeted on his personal account expressing his excitement about the news. The CEO also considered Vietnam one of the most developed markets for Apple products with double digit growth last July. Vietnamese Apple fans are now able to purchase Apple products directly from the official online store. Additionally, Vietnam is announced as the third ASEAN nation to support the use of Apple Pay.
Quartz News commented that Apple is betting on emerging markets in Asia with young populations and digital savvy and Vietnam is among the most potential choices. This newspaper also provided data on the estimated annual growth rate of Vietnam’s digital economy (at 40%) and the digital economic value of the country in 2022 (reaching 23 billion USD).
Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.
Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!
Vietnam is emerging as a prime destination for foreign direct investment (FDI), driven by rapid economic growth, favorable government policies, and an investor-friendly business environment. This eBook provides a deep dive into Vietnam’s economic landscape, highlighting key industries such as manufacturing, real estate, and digital banking that attract FDI. It also explores the government’s proactive measures to streamline investment procedures, improve infrastructure, and offer tax incentives for foreign enterprises. Additionally, it covers crucial insights into market entry strategies, regulatory requirements, and socio-cultural factors that influence business success in Vietnam.
Download the eBook now to gain expert insights into successfully navigating Vietnam’s dynamic investment landscape!
Founded in 2009, Viettonkin Consulting is a multi-disciplinary group of consulting firms headquartered in Hanoi, Vietnam with offices in Ho Chi Minh City, Jakarta, Bangkok, Singapore, and Hong Kong and a strong presence through strategic alliances throughout Southeast Asia. Our firm’s guiding mission is aimed towards facilitating intra-ASEAN investments and connecting investors in Southeast Asia with the rest of the world, thus promoting international business relationships and strengthening inter-nation connections.
