Apple supplier Pegatron looks to expand in Vietnam, beyond

By Van Truong
Thu, June 16, 2022 | 11:40 am GMT+7

Taiwan-headquartered Pegatron, which makes about 20-30% of iPhones, is putting an emphasis on expanding its factories out of China, which began pandemic-related lockdowns in several cities this April.

"We faced Covid controls for two months. We couldn't have assessed that in advance, so that makes me emphasize our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilization of our production capacity," Pegatron president Liao Syh-jang was quoted by Reuters as telling an annual shareholder meeting Wednesday in Taipei.

The Apple assembler in April suspended operations at its Shanghai and Kunshan plants in mainland China due to Covid-19 lockdowns, affecting production and deliveries.

iPhone 13 products. Photo courtesy of the brand.

iPhone 13 products. Photo courtesy of the brand.

In recent years, Pegatron has been seeking to expand production in Southeast Asia and North America. In September 2020, the Taiwanese major announced its plans to invest $1 billion in three hi-tech product factories in northern Vietnam, located in Nam Dinh Vu Industrial Park in Hai Phong city to make computers, electronic devices, communications equipment, electronic components and circuit boards for global tech giants. The first plant is already operational.

Also in Hai Phong, the Apple, Microsoft, and Sony supplier got a license this February to build a $68.3 million housing project in Dinh Vu-Cat Hai Economic Zone for its workers. It is designed to accommodate 10,000 employees.

Taiwanese firm Foxconn, the world's largest contract electronics maker that also assembles iPhones, made its foray into Vietnam in 2007 and had invested $1.5 billion as of December 2020. Foxconn injected another $270 million in January last year to expand its laptop and tablet assembly capacity in the country. The major currently employs about 60,000 people in the country.

Apple does not have a plant in Vietnam but the Southeast Asian country is the American giant’s largest manufacturing base outside mainland China via its suppliers, including Foxconn, Pegatron, Luxshare, Goertek, ASE Technology, and Wistron. Luxshare is producing AirPods, BYD is preparing to make iPads, while Goertek is embracing bold expansions in the north.

Also in northern Vietnam, U.S.-based Amkor Technology Inc., a global semiconductor product packaging and test services provider, is investing as much as $1.6 billion until 2035 to build a state-of-the-art facility as an important part of the major’s worldwide network.

American giant chipmaker Intel has so far invested $1.5 billion in Vietnam since its 2006 inception here, making it the largest U.S. technology investor. The corporation has plans to enlarge business and investment in Vietnam, Intel CEO Patrick Gelsinger told Vietnamese Prime Minister Pham Minh Chinh on May 27 in Hanoi.

“Vietnam is an attractive destination for foreign investors as this is a dynamic economy and a promising market,” Gelsinger said.

At present, Ju Teng International Holdings Ltd., a global supplier of casings products for notebook computer manufacturers, original equipment manufacturers and original design manufacturers, is preparing to start construction of its $200 million large-scale factory in Nghe An province, central Vietnam.

The factory, on a 120-hectare site in Hoang Mai 1 Industrial Park, will make electronic device casings and automobile accessories. Trial operation is set for April 2023, followed by official production scheduled for October the same year.

Comments (0)
  • Read More
Vietnam's Hoa Phat Group to become Southeast Asia’s first producer of steel rails for high-speed railways

Vietnam's Hoa Phat Group to become Southeast Asia’s first producer of steel rails for high-speed railways

Hoa Phat Group, a top steelmaker in Vietnam, on Thursday signed an agreement with Germany’s SMS Group under which the latter will provide the former technology and production lines for manufacturing steel rails and shaped steel, with an annual capacity of 700,000 tons.

Companies - Fri, May 30, 2025 | 11:48 am GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 9:00 am GMT+7

Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense

Vietnam's telco giant Viettel signs deal with France’s John Cockerill Defense

Viettel High Tech, the core military and civilian R&D arm of Vietnam’s military-run telecom giant Viettel, has signed a cooperation agreement with John Cockerill Defense, a leading weapon designer and manufacturer in France.

Companies - Thu, May 29, 2025 | 9:14 pm GMT+7

MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event

MB showcases comprehensive financial solution Biz MBBank at Digital Transformation Day event

Vietnam's leading bank MB on Thursday introduced its latest digital technology solutions, notably the Biz MBBank digital financial platform, at the "Smart Digital Ecosystem in the New Era" event organized by the central bank.

Companies - Thu, May 29, 2025 | 8:02 pm GMT+7

Vietnam's auto distributor TMT to launch $3.8 mln charging station firm

Vietnam's auto distributor TMT to launch $3.8 mln charging station firm

Vietnamese auto distributor TMT Motors has announced the establishment of a charging station company with a charter capital of VND100 billion ($3.84 million).

Companies - Thu, May 29, 2025 | 4:45 pm GMT+7

US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

Excelerate Energy wants to make Vietnam a center for LNG distribution to the ASEAN region, president and CEO Steven Kobos told Prime Minister Pham Minh Chinh at a meeting in Hanoi on Thursday.

Energy - Thu, May 29, 2025 | 4:33 pm GMT+7

Bourse shifts to heat up Vietnam's banking stocks

Bourse shifts to heat up Vietnam's banking stocks

Several Vietnamese banks are planning to move their shares from the Unlisted Public Companies Market (UPCoM) to the Ho Chi Minh Stock Exchange (HoSE) this year, creating new momentum for banking stocks, long dubbed the “king” group.

Finance - Thu, May 29, 2025 | 2:48 pm GMT+7

Dairy giant TH Group proposes 5 projects in southern Vietnam

Dairy giant TH Group proposes 5 projects in southern Vietnam

TH Group, one of Vietnam’s leading dairy producers, has proposed five major projects in the southern province of Binh Phuoc, in the fields of industrial production and urban area, golf course and high-tech agricultural production zone developments.

Industries - Thu, May 29, 2025 | 12:02 pm GMT+7

2024 cyberattack 'a blessing in disguise' for Vietnam's leading broker VNDirect: chairwoman

2024 cyberattack 'a blessing in disguise' for Vietnam's leading broker VNDirect: chairwoman

The cybersecurity breach that major Vietnamese brokerage VNDirect Securities encountered in 2024 was "an unfortunate incident, but also a lucky chance", chairwoman Pham Minh Huong said on Wednesday.

Finance - Thu, May 29, 2025 | 9:48 am GMT+7

Vietnam prioritizes smart, green seaport projects: Deputy PM

Vietnam prioritizes smart, green seaport projects: Deputy PM

Vietnam encourages smart and green seaport investments, as technical barriers related to CO2 emissions and CO2 taxes begin to be tightened up globally.

Infrastructure - Wed, May 28, 2025 | 10:07 pm GMT+7

New Zealand, Vietnam expand timber trade partnership

New Zealand, Vietnam expand timber trade partnership

New Zealand Forestry and Trade Minister Todd McClay on Tuesday unveiled a new bilateral agreement with Vietnam designed to boost timber exports and remove potential trade barriers in the two countries' forestry sectors.

Companies - Wed, May 28, 2025 | 8:53 pm GMT+7

Norway vows to support Vietnam's energy transition

Norway vows to support Vietnam's energy transition

Norway is committed to supporting Vietnam’s energy transition, Norwegian Ambassador to Vietnam Hilde Solbakken said at a technical seminar held in Hanoi on Wednesday.

Companies - Wed, May 28, 2025 | 8:49 pm GMT+7

Thailand expected to become regional luxury retail hub

Thailand expected to become regional luxury retail hub

Thailand's luxury retail market is valued at $4.4 billion and projected to grow by approximately 5% annually through 2028, placing the country at the forefront of luxury retail in Southeast Asia and seventh in Asia-Pacific, according to property consultant CBRE Thailand.

Southeast Asia - Wed, May 28, 2025 | 8:44 pm GMT+7

Indonesia affirms role as leading global maritime hub

Indonesia affirms role as leading global maritime hub

The Indonesia Maritime Expo, held as part of Indonesia Maritime Week 2025 on May 26-28, is the first large-scale maritime event in the country, aiming to affirm its role as a global maritime hub and promote the sustainable development of the region’s maritime industry.

Southeast Asia - Wed, May 28, 2025 | 8:41 pm GMT+7

Vietnam benchmark VN-Index hits 3-year high

Vietnam benchmark VN-Index hits 3-year high

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), recorded a four-day gaining streak on Wednesday, rising 2.06 points, or 0.15%, to 1,341.87 points - the highest since May 2022.

Finance - Wed, May 28, 2025 | 6:37 pm GMT+7

HSBC launches sustainability improvement loan in Vietnam

HSBC launches sustainability improvement loan in Vietnam

HSBC has introduced its Sustainability Improvement Loan, a new financing solution tailored for businesses with annual turnover less than $550 million, in Vietnam, after launching it in 12 markets including the UK, Middle East, Hong Kong and Singapore last year.

Banking - Wed, May 28, 2025 | 6:15 pm GMT+7