Apple recently released its global supplier list for fiscal year 2023 (FY23).
In recent years, it has required its suppliers to diversify their production bases to reduce the risk of over-concentration and over-reliance on China. The Southeast Asian (SEA) region, hailed as an important market that can take over the reins, has begun to welcome significant investments, with Vietnam particularly promising.
According to Retail News Asia, the FY23 Apple supplier list, which counts to the end of September 2023, has Vietnam as the market with the most Apple suppliers in the SEA region; the country also ranks fourth globally.
Data shows that in FY23, the number of Apple suppliers in Vietnam reached 35, an increase of 10 (actually 12 in, 2 out) from 25 in the previous fiscal year (FY22). In the SEA region, this figure is ahead of Thailand (24), Malaysia (19), and the Philippines (17).
The 12 new Apple suppliers in Vietnam for FY23 include China's AAC Technologies, Insight, LY iTech, Desay Battery, Sunway Communication, and Sunwoda; Taiwan's Foxlink, Golden Arrow Group, Quanta, and Yageo; Singapore's Hi-P International Limited; and the US's R.R.Donnelley and Sons Company. The two exiting suppliers are China's MYS and South Korea's Seoul Semiconductor.
In addition, China's Biel Crystal and Luxshare Precision have built additional factories in Vietnam, increasing the number from 1 to 2. In contrast, the number of factories in Vietnam for US-based Molex Incorporated has decreased from 2 to 1.
Globally, Vietnam is only behind China (158), Taiwan (49), and Japan (44) in terms of the number of Apple suppliers. Despite the supply chain accelerating their diversification of production bases, China remains Apple's largest manufacturing hub, accounting for 37.5% out of the total of 761 locations.
The report pointed out that since 2016, with companies like Foxconn and Luxshare Precision setting up factories, Vietnam's Apple supplier count has grown rapidly, now producing products such as the iPad, MacBook, Apple Watch, and AirPods.
During Apple CEO Tim Cook's recent visit to Vietnam, he met with Prime Minister Pham Minh Chinh. Cook promised to expand the procurement of components produced by local suppliers and to support innovation.
