Some of the biggest manufacturers are working with localities to discuss operations expansions, photo Le Toan

After getting an investment certificate for two projects worth $250 million in late June, Foxconn Singapore is eager to work with Quang Ninh People’s Committee and relevant authorities to implement preparing works. These factories will focus on manufacturing and assembling electronic components of technological devices.

Both projects were granted approval the day online application through the provincial public service portal, as opposed to the typical 15 working days.

The world’s largest contract manufacturer and assembler of electronics, Foxconn outperformed its industry rivals last year, reportedly earning VND7.5 trillion ($317 million) in after-tax profit from its 16 Vietnamese plants.

According to a financial report published in April by the Taiwanese firm, its facilities manufacturing spare parts and electronic devices generated the most gains in Vietnam.

Among Foxconn’s industry rivals, New Wing Interconnect Technology Co., Ltd, based in the northern province of Bac Giang, reported an after-tax profit last year of almost VND5 trillion ($210 million) from a total revenue of VND33.8 trillion ($1.43 billion).

Fuyu Precision Component and Fuhong Precision Component saw a little over VND2.4 trillion ($103 million) and $1.37 trillion ($58.26 million) in after-tax profit, and almost VND60 trillion ($2.54 billion) and $1.94 billion in revenue for the whole year, respectively.

Meanwhile, Luxshare ICT is the latecomer among these three manufacturers, but has had the fastest rise. Entering Vietnam in 2016, the company established a base at Quang Chau Industrial Park in Bac Giang province. By 2019, three more facilities had been built in Van Trung Industrial Park and at VSIP Nghe An. In 2021, Luxshare Vietnam’s three facilities acquired nearly $4 billion in revenues, up 130 per cent on-year and surpassing AirPod maker Goertek.

GoerTek is now working with ministries and some localities to discuss plans to expand their operation in the country.

Deputy chairman Kazuyoshi Yoshinaga said, “Goertek considers Vietnam as the group’s vital important production hub overseas, which shoulders 30 per cent of the total capacity and revenue of the group. In the strategy planned for the next five years, Goertek will increase the total investment in the Southeast Asian country to $1.5 billion.”

GoerTek, which also plans to manufacture VR headsets in Vietnam from 2024, expects the Southeast Asian country to produce more than half of its global revenues in three years, up from one-third now. It targets to acquire $10 billion in revenue from Vietnam in the next 10 years, and the figure is expected to increase to $20 billion in the next 15 years.

According to Counterpoint Research analysts, Vietnam has attracted 21 Apple suppliers to operate in the country. The room for growth in these manufacturers is still big because the country will make 65 per cent of Apple wireless AirPods by 2025 as the US tech giant continues to shift its production away from China, J.P. Morgan analysts forecast. The country would also reportedly account for 20 per cent of iPad and Apple Watch output and 5 per cent of MacBook.

Furthermore, technology giants are continuing to expand their operations in Vietnam, raising the demand for spare parts and electronic components.

Samsung has already invested more than $18 billion in Vietnam, and the group plans to increase the amount to $20 billion over the next two years.

And since 1995, LG has invested $5.3 billion in Vietnam across multiple fields, including cameras, electronics, household appliances, and auto component production.

Suk Myung Su, general director of LG Display Vietnam Haiphong said, “LG Display Vietnam is one of the leading high-tech arms of LG Corporation, which targets to have long-term investment in Haiphong. We are currently the largest South Korean investor in the port city and will continue to expand our operation here.”

LG Corporation will invest an additional $4 billion in Vietnam and plans to make the nation its production hub for smartphone camera products.