Foxconn Vietnam battles for talent amid Chinese competition

Foxconn, the world's largest electronics contract maker, is likely to face a human resource challenge in Vietnam as more Chinese competitors are setting up shop in the Southeast Asian country.

Young Liu, CEO and chair of Foxconn, the world's largest iPhone maker, told reporters on Saturday he noticed the company's Chinese competitors were setting up campuses near its base in Vietnam to get closer to its workers, wrote Business Insider.

He added Foxconn currently employs about 60,000 people in Vietnam, and will "substantially" increase the number in the next one to two years, but did not give specific figures.

As a key assembly partner for Apple, Foxconn has been producing electronics in Vietnam for years. The Taiwanese corporation made its foray into Vietnam in 2007 and had invested $1.5 billion as of December 2020. In January last year, it injected another $270 million to expand its laptop and tablet assembly capacity 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 of mainland China via its suppliers. In Vietnam, Luxshare is producing AirPods, BYD is preparing to make iPads, while Goertek Inc. is embracing bold expansions in the north.

Besides BYD, the three key suppliers for Apple in Vietnam are Foxconn, Goertek, and Luxshare.

Previously known as a center for manufacturing garments and shoes, the tech-savvy country has emerged as a leading hub for electronics manufacturing in Southeast Asia. It is now home to Samsung, LG, Intel, Amkor Technology, Panasonic, Canon, Foxconn, Pegatron, Goertek, Luxshare, BYD, Wistron, Foster Electric, and other facilities.