China’s current woes could be Vietnam’s bonus

[ASEAN NOW News]

Current lockdowns in Shanghai and other cities as part of China’s anti-Covid policy have already caused supply-chain bottlenecks for many western companies.

 

Last week the Vietnamese Prime Minister went to Apple’s HQ to discuss getting more production for Vietnam.

 

Apple could make its wireless earphone, Air Pods Pro 2, in Vietnam this year as it seeks to expand production outside China amid strict Covid-19 policies there, according to reports.

 

The shift in Air Pods Pro 2 production can be attributed to the relatively uncomplicated supply chain and Vietnam’s better production environment (such as infrastructure and workforce) vs. most countries outside China.

 

Apple has told some of its contract manufacturers that it wants to boost production outside China, citing Beijing’s strict anti-Covid policy among other reasons, the Wall Street Journal reported last week.

 

India and Vietnam, already sites for a small portion of Apple’s global production, are among the countries getting a closer look from the company as alternatives to China, it said, citing people involved in the discussions.

 

Vietnam is well placed to grab several major contracts from other global heavyweights as there seems to be a general move away from “Made in China”.

 

 

Vietnam has a history of working with several foreign multinationals such as Samsung and Nike and offers cheap labour.

 

With his recent US trip, the Prime Minister has been out there promoting tax breaks and a reliable business environment to encourage more business, at a time when the world is suffering from a global downturn.

This good be great news for the country’s workforce in the future.

 

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