|An iPhone model developed by Apple. (Photo: Getty Images)
The California-based tech giant has decided the risks of depending heavily on manufacturing in China are too great, and it has asked major suppliers including Foxconn, Pagatron, Wistron, Quanta Computer and Compal Electronics to evaluate the cost of shifting 15-30 percent of production capacity from China to Southeast Asia.
Economist Nguyen Dinh Anh told a Sputnik reporter that if Vietnam is selected, the domestic economy will be boosted while the country will have a chance to increase its prestige in the global economy.
Improvements will be seen in several macro-economic indicators such as GDP, import-export revenue, jobs, and State budget collection, he said, adding that Apple will help give a more modern and industrial look to localities.
Apple’s shift of its production base away from China had already been forecast, and Vietnam is on the firm’s top list of new destinations thanks to various conditions, Anh said, pointing out geographical location as an advantage for Vietnam.
With stable politics, being open to trade, a stable economy and good control of inflation, Vietnam has it all to satisfy both domestic and foreign investors.
Anh also noted the Government’s preferential policies in land access, capital and taxes as attractive to foreign firms, as is the country’s 60-million strong and young workforce.
“Its rival, Samsung, has been successful in Vietnam, thus Apple will have absolutely no regrets when moving production to the country,” he said.
Vietnamese businesses are developing at a faster pace than ever before, and many of them are able to join the global value chain and play an important role in the supporting industry.
Local infrastructure facilities are being completed in line with international standards, while living quality has been improved to meet satisfaction of experts and senior managers from the world’s leading corporations.