The Vietnamese government has issued a license to Foxconn, the manufacturer of Apple, build a new factory on its territory. The Vietnamese province that will receive the structure is Bac Giang, in the northeast of the Asian country.

This news helps confirm information from November last year and may be just part of a larger movement of Apple to decrease China's focus. This move is set against the backdrop of the trade war involving the USA and the Chinese government.

In addition to Bac Giang, another province in Vietnam may be about to announce Foxconn investments. Thanh Hoa is located 160 km south of the capital Hanoi and could also receive Foxconn investments. Apple, according to the country's state press.

How much will be invested?

For Foxconn to manufacture tablets and notebooks in Bac Giang, the company plans to invest US$270 million, which is roughly R$1,5 billion in current values. The Vietnamese government says it expects the factory in the province to produce eight million units of devices per year. Much of Foxconn's production in Vietnam will certainly go to Apple, between iPad and MacBook models.

Still according to the government of Vietnam, Foxconn has already invested around US$ 1,5 billion in the country and intends to invest another US$ 700 million. In current values, this would be around R$ 7,9 billion already invested, plus new investments totaling over R$ 3,7 billion. These amounts would be accompanied by the recruitment of 10.000 local workers, initially.

That's without counting the amount that could be channeled into operations in Thanh Hoa. That would be another $1,3 billion in the province south of Hanoi, or about R$6,8 billion at current exchange rates, Vietnamese state media reported last week.

There is no official date for the start of construction, nor when the manufacture of devices will be able to begin in Bac Giang. However, in November, a high-ranking member of the Apple interviewed by Reuters, he said that production at Foxconn's new factory in Vietnam could begin in the first half of 2021.

On the same occasion, he stated that part of the production of iPads and MacBooks currently carried out in China would be transferred to these new Vietnamese facilities. However, he did not provide any specifics regarding quantities or when China would lose this share to Vietnam.

Through which channels you reach those people, classic and out of the box. Reuters

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