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Apple moves part of its production from China to Vietnam

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Apple moves part of its production from China to Vietnam
FILE PHOTO: An employee of the Apple Store shows the Apple Watch Series 5. Apple’s smart watches would begin to be manufactured in Vietnam, a new manufacturing destination for its technology products (Reuters)

Manzana plans to make smart watches Apple Watch and laptops macbook pro in Vietnama movement that follows a general trend in recent years of moving part of its production from China to this country of Southeast Asianrevealed this Wednesday Asian Nikkei.

According to the Japanese newspaper, the Chinese company Luxshare Precision and the Taiwanese Foxconn have started trial manufacturing of the Apple Watch in a factory in northern Vietnam with the intention of moving for the first time part of its production outside of China.

Secondly, Manzana has also asked its suppliers to start a trial production line for the macbook pro in Vietnambut the move from large-scale manufacturing has been slowed by problems linked to the pandemic and the complexity of the necessary supply chains.

These decisions follow other Manzana in the same direction in recent years, in which Vietnam has become its second production center behind of Chinawith the manufacture of products such as tablets iPad or wireless headphones air pod.

The air pod were the first product whose production moved to Vietnamshortly before the start of the pandemic, following in the footsteps of other leading US companies in the face of tariffs imposed by the Administration of donald trump on Chinese imports.

Workers at a Foxconn plant dedicated to the production of Apple products in Zhengzhou, China, during a break.  Now, the American company plans to move its productions to Vietnam (FILE PHOTO - Gilles Sabri/The New York Times)
Workers at a Foxconn plant dedicated to the production of Apple products in Zhengzhou, China, during a break. Now, the American company plans to move its productions to Vietnam (FILE PHOTO – Gilles Sabri/The New York Times)

So far, the administration Biden The import taxes on Chinese products have not changed, which, together with the lower cost of labor in Vietnam, explains why the transfers continue.

The manufacture of Apple Watch it is all the more sophisticated because assembling so many components into such a small device requires high-tech skills, a challenge for Vietnamese engineers and developing industry. To be able to manufacture this equipment would be a great step for Vietnam in the context of the country striving to further develop the technology manufacturing sector.

Manzanahowever, is not the only company that has diversified its production. Other major electronics manufacturers such as Google, Dell and Amazon have also set up production in Vietnam. to diversify their productive activities. According to the analysis of Asian Nikkei on the latest list of existing suppliers of Manzanathe number of suppliers of this company located in Vietnam increased from 14 partners to at least 22 in 2018.

resounding change

The policy of transferring its production to Vietnam It marks a sea change for Apple, which had relied on China for nearly all of its manufacturing needs for decades. But the strong restrictions by COVID-19 and other restrictive measures generated a new focus on the conduct of the technology company.

“For Vietnam, Apple’s change has been a blessing. The number of Apple suppliers with facilities in the country has increased to at least 22 from 14 in 2018. Asian Nikkei. Eddie HanSenior Analyst at IsaiahResearchsaid electronics makers are trying to find a balance amid tensions between Washington Y beijing.

Geographically, we find that major international electronics brands such as Apple and Samsung are trying to reduce their reliance on manufacturing products within China. But on the other hand, these international players have adopted more China-based suppliers, such as Luxshare and BYD in Apple’s case, and Huaqin in Samsung’s, to make more of their products.“, said They have a Asian Nikkei.

Finally, They have concluded: “China’s role as the world’s largest factory has been called into question since the trade war and, subsequently, its zero-COVID and energy policies. That really makes Vietnam, which is close to China, an ideal destination for many electronics manufacturers as the nation gradually grows its supply chain ecosystem.”.

(With information from EFE and Nikkei Asia).-

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