INTERNATIONAL – Foxconn, the world’s biggest electronics contract manufacturer and a key Apple supplier, is considering setting up a factory in Vietnam to mitigate any impact of an ongoing trade war between the United States and China, Vietnamese state media reported.
The move would be one of the first significant steps by a major company with large manufacturing facilities in China to secure an additional production base outside the country because of trade tensions between the world’s top two economies.
The report also comes as several executives of other corporations interviewed by Reuters singled out Vietnam and Thailand as preferred destinations should they need to shelter operations from the trade war.
“Foxconn Group and the Hanoi People’s Committee are working together to open an iPhone manufacturing facility in Vietnam to negate the impacts of the US-China trade war,” the Vietnam Investment Review reported on Monday.
The newspaper cited Vu Tien Loc, head of the Vietnam Chamber of Commerce and Industry, as raising the matter with Prime Minister Nguyen Xuan Phuc at a meeting on Nov. 22.