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Apple Assembler Foxconn Considers Opening iPhone Factory in Vietnam

The iPhone assembler is looking towards Vietnam to escape the collateral damage of US-China trade tensions.

According to a Vietnam Investment Review report, the Hanoi People's Committee is currently in talks with Foxconn Technology Group, the Taiwanese multinational electronics manufacturing company and one of Apple's biggest assemblers, to open an iPhone manufacturing facility in Vietnam.

The information was revealed by Vu Tien Loc, director of the Vietnam Chamber of Commerce and Industry (VCCI), during a meeting with Prime Minister Nguyen Xuan Phuc, the news source says.

“We are discussing the possibility of this with Foxconn,” Loc told Reuters. The Hanoi People's Committee Chairman Nguyen Duc Chung and Foxconn declined to comment on the news.

Most iPhones are assembled by Foxconn Group and Pegatron in their factories in Shenzhen and Shanghai. A smaller number get assembled in Brazil and India to avoid import taxes in these countries, as the iPhones will be considered domestic products.

Foxconn, formerly Hon Hai Industry, entered Vietnam in early 2007 with factories in Bac Giang, Bac Ninh and other provinces. In 2010, Foxconn gained widespread attention after approximately 18 of its employees attempted suicide, which resulted in a minimum of 14 deaths. The news raised concerns over the giant's labor practices.

[Photo via Zing]

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