Although Foxconn has not moved the Chinese factory yet, Foxconn has earned nearly $ 3 billion a year from Vietnam

Foxconn is one of the largest electronics manufacturers in the world. In 2012, Foxconn factories produced about 40% of the consumer electronics sold globally.

Foxconn’s main source of revenue comes from the production of iPhone, iPad and some components and accessories for Apple. Besides, Foxconn is also a manufacturer of many other electronic brands such as Kindle, Nintendo, Xiaomi, Playstation, Xbox …

Foxconn also has more than ten years of operation in Vietnam. In March 2007, the group started to build 2 large factories including Fuhong Precision Component in Dinh Tram Industrial Zone, Bac Giang Province and Funing Precision Component located in Que Vo Industrial Park, Bac Ninh. The main activities of these two factories are in the field of processing electronic equipment and components with one of the outstanding products being Apple Earpods headphones.

By 2015, Foxconn continued to establish New Wing Interconnect (FIT Vietnam), which produces data cables.

New Wing Interconnect factory is located in Van Trung Industrial Zone, Bac Giang – this industrial park is invested by FuGiang, another subsidiary of Foxconn with scale of 238ha.

Although the scale is not small but because it is not a brand familiar to consumers, Foxconn’s operation in Vietnam is less noticeable than other big brands like Samsung, LG or Canon.

According to Bac Ninh Newspaper, by the beginning of 2019, three of Foxconn’s factories are creating jobs for 39 thousand workers with an average income of 8-9 million VND / person / month.

The addition of a new New Wing Interconnect factory has put the business of Foxconn Vietnam into rapid increase. According to VIRAC data, in 2018, the total revenue of 3 main Foxconn factories in Vietnam reached over VND 64,500 billion (nearly USD 2.8 billion) – an increase of 32% compared to 2017. Of which, Fuhong factory Precision Component Bac Giang contributes nearly half of total revenue with over VND 30,000 billion.

This result is slightly better than LG Electronics Vietnam Haiphong, reaching nearly VND 62,000 billion in revenue and 1.5 times higher than Canon Vietnam. However, if compared to factories of Samsung Vietnam, Foxconn is still “small”.

In Vietnam, Foxconn also owns Fushan Technology, which is a Nokia / Microsoft Mibile phone factory. Due to the decline of Nokia brand, sales of this factory are not large and continuously decline.

Promote investment in Vietnam

In the context that electronic corporations are moving a part of their activities out of the Chinese market, Foxconn is also boosting investment in Vietnam, including expanding existing and exposed projects. Advancing new projects.

In November 2018, the charter capital of the New Wing Interconnect company increased sharply from VND 1,803 billion to VND 4,733 billion (USD 210 million). On July 10, 2019, Fuhong’s charter capital was nearly doubled to 134 million USD.

Recently, in the working session with the leaders of Quang Ninh province at the end of June 2019, Foxconn Vietnam is studying and considering investing in the project of assembling television screen components factory in Dong Mai Industrial Zone, Quang Yen Town. with a factory scale of 10 hectares, the demand for labor of 3,000 people with a total investment of phase I is 40 million USD.

With the availability of large parts manufacturing factories in Vietnam as well as many partners in the electronics supply chain who have made significant investments in Vietnam, the possibility that Foxconn will assemble iPhone in Vietnam once Apple decided to move this activity out of China.