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May 19, 2022 / 11:57

US big techs seek greater presence in Vietnam

Vietnam is fast becoming a key production hub for major US tech firms.

US big techs in Silicon Valley such as Intel, Apple, and Google have expressed their plans to further expand operations in Vietnam.

 Prime Minister Pham Minh Chinh at Intel's headquarter. Source: VGP

The view was shared during Prime Minister Pham Minh Chinh’s visit to these companies' headquarters on May 17.

Intel’s Corporate Vice President and General Manager of Manufacturing and Operations Keyvan Esfarjani in a meeting with Chinh stressed the vital role of Vietnam in its supply chains.

In January 2021, Intel announced a further investment of $475 million in Intel Products Vietnam (IPV), the largest assembly and test manufacturing facility in the Intel assembly and test network.

According to Esfarjani, the firm has so far fulfilled the first phase of its investment commitments.

Esfarjani noted Intel Vietnam last year won the highest prize in terms of quality within the group, which showcases the quality of the workforce and the importance of Intel Vietnam.

Given the country’s high-quality infrastructure network and human resources, Esfarjani said Vietnam remains a potential investment destination for tech firms around the world.

In the coming time, global demand for semiconductors is set to rise along with advancements in new technologies and big data.

Intel expects to diversify its supply chains by investing in different countries amid growing global uncertainties, he added.

Prime Minister Chinh congratulated Intel’s positive business performance in Vietnam and the world and thanked the company for its active contribution to the economy, exports, job creation, and development of local supply chains.

Chinh called for Intel to further expand investment in Vietnam’s localities beyond Ho Chi Minh City.

“On the foundation of solid Vietnam-US relations, Intel’s investment in Vietnam is a smart choice,” Chinh added.

 PM Chinh at Intel's headquarter. 

In a meeting with Apple CEO Tim Cook, Chinh said Vietnam considers trade, investment, and finance among key pillars to push for Vietnam-US comprehensive partnership.

“The Government is committed to creating a fair, transparent business environment based on market principles, ensuring utmost favorable conditions for US companies and investors doing business in Vietnam,” Chinh said.

Chinh added Apple’s products have now become popular in the world, including in Vietnam.

“The inevitable rise of the digital economy globally means more opportunities for Apple,” he said.

Chinh expressed his delight as Vietnam has further integrated into the global supply chains, including the assembly of several Apple products, calling for the firm to further expand its presence in Vietnam and soon turn the country to be one of its key markets in Asia.

Tim Cook thanked the Vietnamese Government for supporting Apple’s operation in the country.

He noted the company wants to expand its supply chains in Vietnam and integrate local firms into the production chains.

Tim suggested Apple would consider raising the number of Vietnamese vendors and a higher rate of Vietnamese components in its products.

In this process, Tim expected more incentives from the Government to promote US businesses, especially hi-tech companies, to come to Vietnam.

At present, key suppliers of Apple, including Pegatron, Foxconn, and Wistron, are operating 31 manufacturing plants in 14 provinces/cities in Vietnam with over 160,000 employees, specializing in producing electronic components for Apple.

 PM Chinh at Google. 

Meanwhile, Google has been assisting the Vietnamese Government in timely providing  information to the public during the pandemic, as well as in the preparation process for economic recovery post-Covid-19.

A representative of Google said it expects to continue contributing to Vietnam’s economic development and sustainable digital ecosystem.

At the meeting, Chinh highlighted the partnership between Google and Vietnam over the years, as well as new projects in the country.

 PM Chinh and Vietnam's high-ranking delegation at Google. 

“This is particularly significant as Vietnam accelerates comprehensive digital transformation, seen as a new driving force for the country’s industrialization and modernization,” Chinh said.

The prime minister suggested Google support Vietnam in the digitalization process of local businesses, including the development of digital government, economy, and society.