Although they have not installed an iPhone but only made accessories, Foxconn and Luxshare ICT have earned nearly 4 billion USD from Vietnam.

Luxshare ICT is emerging as a key Apple partner in moving iPhone assembly operations outside of China.

Apple Insider quoted foreign director Tang Due Bang of Luxshare as saying that an Apple representative visited the factory in Vietnam last summer to check the construction process and the ability to assemble the facility’s iPhone. this.

Mr. Bang also affirmed that Luxshare’s factory in Van Trung industrial park, Bac Giang has been inspected, ensuring the right scale, with enough facilities and investment capital to start assembling iPhone. However, a number of issues are still not satisfactory, especially in the dormitory for workers.

The report does not specify which requirements Luxshare has not met, but said it is possible that because of these things, Apple is currently suspending the production of iPhone in Vietnam. Maybe Luxshare will have to wait until these two dormitories are completed to start assembling iPhones for Apple.

To qualify to start iPhone production, Luxshare ICT needs to increase the number of workers to about 50,000-60,000 people, double the current figure of about 28,000, according to the Apple Insider report.

Currently, the main product that Luxshare ICT Vietnam is producing can be the AirPods headset. In 2019, this company’s revenue reached VND 7,355 billion, nearly 5 times more than in 2018. This result is still quite modest compared to many other electronic equipment / components manufacturers. activities in Vietnam.

However, the size of Luxshare ICT will increase significantly if it takes part more deeply in the production of Apple devices.

Foxconn – the main partner in assembling the iPhone since the beginning has also had more than a decade of operation in Vietnam. But it is not clear whether Foxconn will assemble iPhones in Vietnam.

The revenue of the Foxconn complex is continuously growing 20-30% / year

In March 2007, the group started to build two large factories including Fuhong Precision Component in Dinh Tram Industrial Park, Bac Giang province and Funing Precision Component located in Que Vo Industrial Park, Bac Ninh. The main activity of these two factories is to process electronic equipment and components. By 2015, Foxconn continues to establish a New Wing Interconnect (FIT Vietnam) company specializing in manufacturing data cables.

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

Although the scale is not small, but because it is not a familiar brand to consumers, Foxconn’s activities in Vietnam receive less attention compared to other big brands such as Samsung, LG or Canon.

According to Bac Ninh Newspaper, as of early 2019, the three above Foxconn factories are creating jobs for 39,000 workers with an average income of 8-9 million VND / person / month.

According to VIRAC, in 2018, the total revenue of Foxconn 3 companies in Vietnam reached more than 64,500 billion VND – an increase of 32% compared to 2017. In 2019, the revenue of this group continues to increase 24% to more than 80,000 billion VND (3.4 billion USD). The main growth came from Funing Precision Component in Bac Ninh when revenue soared 76% to nearly 33,000 billion VND.

Foxconn’s total revenue in Vietnam is nearly equivalent to that of LG Electronics Vietnam Haiphong, reaching nearly 82,000 billion VND. However, if compared to the factories of the Samsung Vietnam complex, Foxconn is still very “small”.

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

In the context of electronic corporations moving a part of their operations out of the Chinese market, Foxconn is also promoting investment in Vietnam, including expanding existing projects as well as new projects.

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

During a meeting with leaders of Quang Ninh province at the end of June 2019, Foxconn Vietnam is researching and considering investing in a project of a factory to assemble TV screen components in Dong Mai Industrial Park, Quang Yen Town.

With the existing large parts manufacturing factories in Vietnam as well as the significant investment by many partners in the electronics supply chain in Vietnam, it is not excluded that Foxconn will assemble. iPhone in Vietnam once Apple decides to move this operation out of China.