Apple CEO says he wants to increase investments in Vietnam

HANOI, Vietnam (AP) — Apple CEO Tim Cook said Tuesday he wants to further increase investment in Vietnam, a day after the company announced it would spend with suppliers in the Southeast Asian production hub.

Vietnam became more important for Litter as the company seeks to diversify its supply chains outside of China, where most of its smartphones and tablets are assembled.

The company started thinking about transferring its production to countries like Vietnam and, more recently, Indiaafter shutdowns to combat COVID-19 in China repeatedly halted the company’s shipments.

Cook made his comments during a meeting with Vietnamese Prime Minister Pham Minh Chinh, according to state media outlet Voice of Vietnam. Apple also said it would increase its supplier spending, according to a press release issued on Monday.

“There is no place like Vietnam, a vibrant and beautiful country,” Cook said, according to the press release, adding that the company’s annual spending in the country has doubled since 2019.

No details were shared about the plan. Cook arrived in Hanoi on Monday for a two-day visit during which he met students, programmers and content creators.

Apple began operating in Vietnam more than a decade ago and claims to be responsible for creating more than 200,000 jobs in the country. Vietnam is also among the top five mobile game producers worldwide.

Apple has 26 suppliers with 28 factories in Vietnam, according to its 2022 list. Most of these are located in northern provinces, where they can be easily linked to existing supply chains in southern China. Northern Vietnam has also historically been a center for electronics manufacturing and has a skilled and cheap labor force.