Financial Services Association, April 15 (Editor Shi Zhengcheng) On Monday afternoon, Beijing time$Apple (AAPL.US)$Company CEO Tim Cook posted several photos of “people in Vietnam” on social media: tasting Hanoi's specialty egg (yellow) coffee with musicians and taking a group photo with an iPhone rear camera at the famous local Hoan Kiem Lake.

Obviously, as the head of a consumer electronics giant and a world-renowned supply chain master, Cook's visit to Vietnam is naturally also related to the layout of the industrial chain.

VND 400 trillion has been invested in the past 5 years

Stuck in time when Cook arrived in Hanoi, Apple issued a statement on Vietnam's official website announcing that it would increase investment in Vietnam's supply chain.

According to data provided in the announcement, Apple's cumulative investment in Vietnam through supply chain partners has exceeded 400 trillion VND since 2019. (Note: The latest exchange rate of RMB to VND is 3466.83. Apple's investment in Vietnam is equivalent to more than RMB 112 billion)

More importantly, the pace of Apple's investment in the region is also accelerating. Also, starting in 2019, the company's annual investment in Vietnam has doubled. Currently, Vietnam's “Apple Chain” has brought more than 200,000 jobs to the region, including employees of Apple and local suppliers, as well as local iOS ecosystem app developers. Since 2017, the number of local software developers has tripled, and now Vietnam is among the top five global producers of mobile games.

According to reports, Cook will spend two days in Vietnam during his current visit. In addition to suppliers, the announcement also mentioned that Cook's current visit will meet local students, creators, and Apple users to learn how Vietnamese use Apple products. Apple will also partner with suppliers to provide rainwater harvesting and filtration equipment to local schools, as well as renewable energy to schools in remote areas.

Vietnam's “Apple Chain” is gradually growing

Apple's investment in Vietnam can be traced back more than 10 years. Today, Vietnamese suppliers have become an important force in Apple's global supply chain. Many of them are subsidiaries set up by global manufacturing giants after entering the Apple chain.

Looking through Apple's FY2022 supplier list, there is no shortage of Hon Hai Precision, which has set up factories in Vietnam to supply Apple,$BYD Company Limited (002594.SZ)$,$Goertek Inc. (002241.SZ)$,$Intel (INTC.US)$,$Lens Technology (300433.SZ)$,$Luxshare Precision Industry (002475.SZ)$,$Samsung Electronics Co., Ltd. (SSNLF.US)$The names of manufacturers that are familiar to global shareholders, such as LG Display, etc.

Currently, Apple's suppliers assemble iPhones, iPads, wireless headphones, watches, and HomePods in Vietnam. Earlier, it was also rumored that Hon Hai will be assembling Macbook computers in Vietnam from mid-2023, but this matter has not yet been confirmed. Considering that iPhone sales are currently at a standstill, the iPad and Mac product lines, which are about to face major upgrades, will also take on more important revenue tasks.

As the layout of the local supply chain gradually deepens, the consumer business is also following suit. The company launched the Apple Store in Vietnam in May of last year, and Apple Pay also entered Vietnam in August. Apple is also looking for programmers to upgrade the Vietnamese language features of the voice assistant Siri, as well as local localization support for Apple Maps in Vietnam.

Vietnam is also a part of the expansion of the Apple industry chain. For Apple, in addition to common advantages such as population structure and labor costs, Vietnam is bordered by China, the “fruit chain base,” and geographical convenience also makes supply chain connections smoother.

Editor/jayden