Apple assembler Foxconn considering iPhone factory in Vietnam

By Reuters December 4, 2018 | 07:58 pm PT

A shovel and FoxConn logo are seen before the arrival of U.S. President Donald Trump as he participates in the Foxconn Technology Group groundbreaking ceremony for its LCD manufacturing campus, in Mount Pleasant, Wisconsin, U.S., June 28, 2018. Photo by Reuters/Darren Hauck

Apple’s biggest iPhone assembler Foxconn is considering setting up a factory in Vietnam to mitigate any impact of the ongoing trade war.

The report from Vietnamese state media comes after several executives interviewed by Reuters last week singled out Vietnam and neighboring Thailand as preferred destinations should they need to shelter operations from the trade war, braving hurdles such a lack of skilled labor and inadequate infrastructure.

Foxconn Group and the Hanoi People’s Committee are working together to open an iPhone manufacturing facility in Vietnam to negate the impacts of the U.S.-China trade war.

Vu Tien Loc, head of the Vietnam Chamber of Commerce and Industry, raised the matter with Prime Minister Nguyen Xuan Phuc at a meeting on Nov. 22.

"We are discussing the possibility of this with Foxconn," Loc told Reuters, without elaborating. Hanoi People’s Committee Chairman Nguyen Duc Chung declined to comment.

Taiwan’s Foxconn, formally Hon Hai Precision Industry Co Ltd, told Reuters it "follows a strict company policy of not commenting on any matters related to current or potential customers, or any of their products".

In trade talks on Saturday, U.S. President Donald Trump and Chinese President Xi Jinping agreed not to introduce any tariffs for 90 days as negotiations continue.