Who is Foxconn? The influence of Foxconn in Vietnam

As the world’s largest electronics contract manufacturer (CEM), Taiwan’s Hong Hai Technology Group – Foxconn – has been continuously expanding its production in Vietnam, demonstrating the strong appeal of our investment environment.

I. Who is Foxconn?

Hong Hai Technology Group (internationally known as Foxconn Technology Group) was founded in 1974 in Taiwan with a foundation in mold manufacturing, gradually developing into a high-tech service enterprise. With nearly 40 years of operation, Hong Hai is now the world’s leader in electronic manufacturing services (EMS), gaining a market share of over 40%. The group  encompasses four main product areas: consumer electronics, cloud computing, computer terminal devices, components, and other fields. At its peak, the total global workforce numbered around one million people, and total revenue reached approximately USD 206.2 billion (2021).

Notable products manufactured by this giant are BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nintendo Switch, Nintendo Switch Lite, Nokia devices, Google Pixel devices, Xiaomi devices, PlayStation 3, PlayStation 4, Wii U, Xbox 360, and Xbox One. Noticeably, Foxconn is currently Apple’s largest manufacturing partner, producing more than 50% of the world’s iPhones.

Foxconn’s business operations span all over the world, covering three continents. The group takes Taiwan as the center, and expands to other countries and territories such as Mainland China, India, Japan, Vietnam, Malaysia, Singapore, the Czech Republic, Hungary, Slovakia, the United States, Brazil, and Mexico. Foxconn’s manufacturing and service facilities are present in more than 20 countries. Currently, Foxconn is providing products for major companies in the United States, Canada, China, Finland, and Japan.

II. Foxconn’s Operations in Vietnam

With the desire to become a leading FDI enterprise in Vietnam, Foxconn Vietnam has established factories in our country and transferred many modern production techniques to provide clients with high-quality, fast, flexible, and reliable services.

The group officially invested in Vietnam in 2007. Over 15 years of construction and development, Foxconn has built a total of seven modern factories in industrial zones with a workforce of over 60,000 workers, engineers, and experts:

• Que Vo Industrial Park, Bac Ninh Province
• Dai Dong – Hoan Son Industrial Park, Bac Ninh Province
• VSIP Industrial Park, Bac Ninh
• Dinh Tram Industrial Park, Bac Giang Province
• Van Trung Industrial Park, Bac Giang Province
• Quang Chau Industrial Park, Bac Giang Province
• Dong Mai Industrial Park, Quang Ninh Province

Foxconn’s main products in Vietnam include precision connectors, mobile phone component assemblies, XDSL, STB, Router, IP-Camera, and small-sized screens.

Recently, in order to expand production in Vietnam, this giant in Apple’s supply chain established a new company named FuKang Technology Limited to invest further in projects in Bac Giang Province.

At the end of November 2020, Nikkei Asia reported that Apple planned to move part of its supply chain out of China, specifically shifting some MacBook production to Vietnam after trial production at Foxconn’s facility in our country. On January 18, 2021, Foxconn was granted a license to build a $270 million factory in Bac Giang Province, clearly intended for the production of MacBooks and iPads. The expected capacity could reach 8 million laptops and tablets annually.

Subsequently, on August 20, 2022, Foxconn signed a memorandum of understanding (MOU) worth $300 million with Kinh Bac City Development Corporation. At the beginning of 2023, Foxconn signed a contract to lease a 50.5-hectare land area in Quang Chau Industrial Park, with the lease agreement extending until February 2057.

III. Impact of Foxconn on Vietnam’s Economy

The continuous expansion of production by the “giant” Foxconn in Vietnam and the recent project to build iPad and MacBook production lines, demonstrates that major technology corporations highly value our country’s investment environment. Ms. Trang Bui, Senior Director for Vietnam Market at JLL, likened enterprises like Foxconn to “queen bees,” whose movement will attract hundreds to thousands of “worker bees.” Manufacturers such as Foxconn will also view Vietnam differently.

Sharing the same viewpoint, Mr. David M. Jackson, General Director of Colliers International Vietnam, believes that Foxconn’s decision reflects confidence in Vietnam’s capabilities, including factors such as political stability, development potential, growth momentum, infrastructure, and the quality of the workforce. He also emphasized, “Vietnam is the first country outside of China to have an iPad assembly plant. Many other leading corporations have also been choosing Vietnam as the location for their large-scale factories. The decision by the world’s leading manufacturer highlights Vietnam’s prominent position compared to many other countries in the region.” 

Furthermore, this promisingly creates numerous positive impacts on the supply chain, particularly Vietnam’s supporting industries, opening up prospects for Foxconn to collaborate with local suppliers to participate in the supply chain. This creates opportunities for Vietnamese businesses to join the high-tech device production lines. In other words, this is a positive signal showing Vietnam’s attractiveness in attracting FDI in general and the wave of investment shifts in particular.

Above, RSL Group has provided basic information about Foxconn and its influence in Vietnam, hoping to bring useful information to readers. Read more articles here. 

Source: Redsunland