Manufacturing and Supply Chain

Apple has dramatically expanded its manufacturing footprint in Vietnam in recent years. As of 2024, Apple works with 35 suppliers in Vietnam – up from just 18 in 2016 – making Vietnam its largest production hub in Southeast Asia and the fourth-largest globally (after China, Taiwan, and Japan) . Major Apple contract manufacturers like Foxconn (Hon Hai Precision), Luxshare Precision, and Goertek have established significant operations in Vietnam . These factories produce a range of Apple products: Vietnam now hosts assembly of AirPods, iPads, and Apple Watches, and has begun involved in MacBook production as well . In fact, analysts project that by 2025 Vietnam will manufacture about 20% of all iPads and Apple Watches, 5% of MacBooks, and a striking 65% of AirPods globally . This reflects how integral Vietnam has become to Apple’s supply chain.

Several factors drive Apple’s shift into Vietnam. Geopolitical pressures like the U.S.–China trade tensions and lessons from pandemic-related disruptions have pushed Apple to diversify production away from China . Vietnam offers strategic advantages: its northern regions border China, enabling proximity to existing supply chains, and the country provides lower-cost, skilled labor and improving infrastructure . These benefits, combined with government incentives, make Vietnam an attractive alternative manufacturing base. Apple’s diversification gained momentum around 2023–2024, with the company moving product lines out of China. For example, Foxconn’s Vietnamese subsidiary is preparing to mass-produce MacBooks and iPads in Bac Giang province with a $508 million project capable of 16 million devices per year . Likewise, Luxshare and Goertek have been assembling AirPods in Vietnam since around 2020, making Apple’s popular wireless earbuds one of the first products produced at scale outside China . By mid-2024, CEO Tim Cook noted that nearly all iPads, Macs, Apple Watches, and AirPods sold in the U.S. would carry “Made in Vietnam” labels, underscoring how production has shifted for those categories . (iPhone production, however, remains centered in China and India for now.)

Apple’s Vietnamese supply chain spans several provinces. The manufacturing cluster is strongest in northern Vietnam – Bac Ninh province alone hosts 9 Apple supplier facilities, with others in Bac Giang (5 facilities) and Vinh Phuc (4) among other locations . Many suppliers are foreign tech firms operating in Vietnam’s industrial parks. For instance, Foxconn (Apple’s largest supplier) first entered Vietnam in 2007 and now has plants in Bac Ninh, Bac Giang, Vinh Phuc, and Quang Ninh provinces, with over $3–4 billion invested and plans to expand further . Foxconn alone employs about 80,000 workers in Vietnam and is adding capacity to focus on “computing products” – which include MacBooks and iPads – at the behest of Apple . Other key partners include Chinese tech firms like Luxshare and Goertek that assemble AirPods and components, and even Samsung Electronics and Intel, which supply parts from their Vietnam facilities . In total, Apple’s local supply chain investments since 2019 have reached roughly ₫400 trillion (around US $16 billion), according to the company. This rapid build-out of manufacturing in Vietnam has created an estimated 200,000 jobs in the country, both directly in factories and indirectly in related sectors (including the iOS app economy) . Clearly, Vietnam has become a crucial link in Apple’s global production strategy, allowing the tech giant to reduce over-reliance on China while tapping Vietnam’s cost advantages and growing industrial base.

Retail and Sales

Vietnam has emerged not just as a production hub for Apple, but also as an increasingly important consumer market. In May 2023, Apple took a major step by launching its official Apple Store Online in Vietnam . This online store allows Vietnamese customers to purchase Apple’s full product lineup directly from Apple for the first time, with local delivery and customer support. The timing of the launch – on May 18, 2023 – came as Apple doubled down on emerging markets to drive growth amid slowing sales in China . Apple’s retail chief Deirdre O’Brien said the company was proud to expand in Vietnam, though notably no physical Apple retail stores (Apple-owned brick-and-mortar outlets) have opened in the country yet . It’s common for Apple to introduce an online store ahead of any physical stores, and industry watchers speculate that a flagship Apple Store in Vietnam could eventually follow as a “brand statement” in major cities . For now, Vietnamese consumers can access Apple’s products either through the official online store or through a network of authorized sellers.

Before Apple’s online store arrived, the company relied on authorized resellers and distributors in Vietnam, and these continue to be vital sales channels. Two local retail chains dominate Apple’s offline distribution: The Gioi Di Dong (Mobile World) – which operates dedicated Apple corners under the “TopZone” brand – and FPT Shop – which includes Apple Premium Reseller stores branded as F.Studio. These two largest electronics retailers account for the bulk of official Apple sales in Vietnam, together representing about 75% of Apple’s authorized outlets in the country . Both have hundreds of storefronts nationwide and receive stock directly from Apple or its regional warehouses. Other authorized dealers include smaller chains like CellphoneS, ShopDunk, Di Động Việt, Viettel Store, and Hoàng Hà Mobile, which sell genuine Apple products alongside other brands. In recent years, Apple simplified its distribution – since 2015, major chains like FPT and The Gioi Di Dong have been allowed to import iPhones, iPads, and Macs directly from Apple instead of going through a third-party wholesaler . This has improved product availability and pricing consistency across official channels.

Product availability in Vietnam has steadily improved. New iPhone models used to arrive weeks after the global launch, but that gap has narrowed. In fact, Vietnam was included in Apple’s first-wave launch for the iPhone 17 series in 2025, meaning Vietnamese customers could buy the newest iPhones on the same day as in the U.S. or other major markets . This was a first for Vietnam and underscored Apple’s recognition of Vietnam as a rising market. Local retailers reported record-breaking demand for the iPhone 17 – for example, the TopZone chain logged nearly 100,000 pre-orders within 24 hours, surpassing the previous iPhone launch, and FPT’s stores similarly fulfilled tens of thousands of day-one orders . Even without an Apple Store storefront, Vietnam has effectively joined the ranks of priority markets for Apple product releases.

In terms of pricing, Apple products in Vietnam are generally sold at prices comparable to global levels (adjusted for VAT at 10% and import duties), which makes them relatively expensive in a country with a lower average income. Flagship iPhones and MacBooks are priced in the tens of millions of dong (e.g. an iPhone 15 Pro Max launched around 30–40 million VND). Despite the high prices, demand is strong – in fact the average selling price of Apple devices in Vietnam hit a record high in 2025, indicating many consumers are opting for premium models . Financing options have become more common, with retailers and banks offering installment plans that reduce upfront costs . These payment plans, along with rising incomes and a growing middle class, have made it easier for young Vietnamese consumers to afford Apple’s high-end products. Additionally, the presence of the official online store and wider authorized retail network has helped curb the grey market for Apple devices. In the past, many Vietnamese buyers relied on unofficial imports (“hand-carried” iPhones from abroad) to get the latest models or slightly lower prices . Now, with faster official releases and local pricing closely aligned to global pricing, the grey market for new iPhones has diminished – a trend encouraged by Apple and its partners to protect the official supply chain.

Market Share and Consumer Behavior

Apple’s position in Vietnam’s consumer tech market has strengthened significantly. In the smartphone segment, Apple now ranks as the #2 brand in Vietnam by market share (units), trailing only Samsung. As of Q2 2025, Apple captured about 20% of smartphone shipments in Vietnam, up from roughly 18% a year prior, according to Canalys data . Samsung still led with around 26% share, while Chinese rivals like Xiaomi (18%), Oppo (~16%), and Vivo (~7%) rounded out the top five . This is a notable change from a few years ago when Apple often sat in third place – Apple surpassed Xiaomi in 2025 to claim the second spot . In terms of revenue share (or by value), Apple’s dominance is even greater, given its premium pricing. Market analysis indicates Vietnamese consumers are increasingly gravitating toward Apple’s high-end devices: the iPhone Pro Max models are especially popular, with Vietnam reportedly accounting for an unusually large proportion of global Pro Max sales (nearly half of local iPhone sales were the largest Pro Max model) . This reflects the brand’s cachet in Vietnam – iPhones are seen as a status symbol and a sign of tech-savvy sophistication among the growing middle and upper class .

Several consumer trends underpin Apple’s rising popularity. First, Vietnam’s macroeconomic growth has boosted purchasing power, enabling more people to afford premium electronics . The expanding urban middle class, especially young professionals, show a “quality over quantity” preference – they might own one expensive smartphone rather than several cheaper gadgets. Apple’s ecosystem also appeals strongly to Vietnamese consumers who value the integration of devices and services (iPhone, iPad, Mac, AirPods working seamlessly together). Second, the availability of 0% installment plans through banks or retailers has lowered barriers to owning expensive iPhones and MacBooks . Many Vietnamese buy phones on monthly plans or credit, making an iPhone attainable with manageable payments instead of a huge lump sum. Third, Apple has benefited from a shift to 5G and premium devices in Vietnam. As 5G networks roll out, consumers looking to upgrade often jump to the latest iPhones which are 5G-capable, whereas some lower-cost brands haven’t transitioned as quickly. Canalys noted that Xiaomi, for example, lost a bit of share partly due to a weaker 5G lineup, whereas Samsung and Apple capitalized on the 5G trend (Samsung with mid-range 5G phones, Apple with the 5G iPhone 12/13/14 series) .

The competitive landscape in Vietnam’s device market shows a split between premium and budget segments. Samsung holds the top unit share by offering a broad range – from affordable Galaxy A-series (which sell in volume and are even manufactured in Vietnam) to flagship Galaxy S/Note/Z phones to compete at the high end. Apple focuses purely on the premium segment (older iPhone models serve mid-tier price points to some extent), and it now essentially owns the ultra-premium slice of the market. Chinese brands like Xiaomi, Oppo, vivo, and Realme aggressively compete in the mid-range and budget segments and collectively still command a majority when combined. But Vietnamese consumers have shown remarkable loyalty to Apple in the high-end category, where the brand enjoys an almost aspirational appeal . Apple’s brand is associated with quality and status; it’s common to see young Vietnamese on the street sporting AirPods or using an iPhone as a fashion statement. Even in categories like laptops and tablets, Apple’s MacBooks and iPads are popular among students and creative professionals in urban areas, though Windows PCs and Android tablets still dominate in sheer volume due to cost advantages. Overall, consumer behavior is shifting toward higher-end purchases in Vietnam’s tech market, and Apple is a prime beneficiary of this trend. The company’s tight ecosystem, premium branding, and improved local accessibility have fostered a loyal and growing customer base in Vietnam.

Local Partnerships and Workforce

Apple’s expansion in Vietnam has been facilitated by numerous partnerships and has had a significant impact on the local workforce. On the manufacturing side, Apple works with a mix of international firms operating in Vietnam and, in some cases, local firms as subcontractors. Key manufacturing partners like Foxconn, Luxshare, Goertek, Pegatron, Wistron, and others have built factories that are part of Apple’s supply chain. While these companies are not Vietnamese-owned (they hail from Taiwan, China, etc.), they often partner with local industrial park authorities and hire tens of thousands of Vietnamese workers. For example, Foxconn’s operations in Vietnam (spread across five northern provinces) employ about 80,000 Vietnamese people and counting . Luxshare and Goertek similarly employ many thousands in their AirPods and components factories in provinces like Bac Giang. In total, Apple estimates roughly 200,000 jobs in Vietnam are supported by its supply chain and the app developer ecosystem . These jobs range from assembly line workers and engineers in factories to local entrepreneurs and software developers creating iOS apps. Apple’s presence has thus contributed substantially to employment and skills development in Vietnam’s tech sector.

In terms of local partnerships, Apple has historically relied on distributors like FPT Trading and DGW (Digiworld) to import and distribute its products. In recent years, however, Apple deepened direct relationships with major retail chains (FPT Shop and The Gioi Di Dong), allowing them to work more closely without middlemen . This not only streamlines logistics but also involves joint marketing and training – for instance, Apple works with FPT and TopZone stores to ensure staff are well-trained on Apple products and that store layouts meet Apple’s standards for an “Apple Premium Reseller.” Apple also partners with Vietnam’s mobile network operators (like Viettel, Mobifone, and Vinaphone) which sell iPhones and iPads bundled with service plans. These telco partnerships have helped expand Apple’s reach beyond the big cities, making iPhones available in carrier stores nationwide and sometimes offering installment purchase plans through the carrier.

Another form of partnership is Apple’s engagement with the Vietnamese developer community and education sector. During Tim Cook’s visit to Hanoi in 2024, he met with local students and content creators who use Apple technology . While Apple has not announced formal R&D centers or Apple-funded coding academies in Vietnam, it has shown interest in supporting local app developers. Thousands of Vietnamese app makers are part of the iOS App Store economy, creating popular apps and games – this is part of the 200,000 jobs figure Apple cited . Apple’s services (like the App Store and Apple Music) being available in Vietnam provide revenue opportunities for local talent in music, media, and software. Additionally, Apple has collaborated with local companies on specific initiatives; for example, in 2024 Apple announced support for a clean water project for Vietnamese schools, likely in partnership with a local NGO or authorities . The Prime Minister has encouraged Apple to invest in workforce training and perhaps partnerships with local universities to develop high-quality human resources . We may see more collaboration in the future, such as scholarships or technology labs funded by Apple.

Crucially, Vietnam’s government views Apple-linked manufacturing as a boon for industrial growth. Local firms have started positioning themselves to join Apple’s supply chain – for instance, some Vietnamese-owned companies might partner as secondary suppliers (providing packaging, accessories, plastics, etc., to the larger assembly firms). One example is the recent entry of Vingroup (a large Vietnamese conglomerate) into battery production; Vingroup’s VinES unit supplies batteries and components, potentially including those that end up in devices or factories used by Apple partners (though not confirmed publicly). Generally, Apple’s demand has spurred the growth of supporting industries like electronics components, precision tooling, and logistics in Vietnam. This creates indirect partnerships – e.g. local logistics providers handle Apple’s distribution, local construction firms build factories for Apple’s suppliers, and local communities host these large industrial workforces.

In summary, Apple’s presence has translated into significant employment opportunities and know-how transfer in Vietnam’s tech manufacturing sector. Through its suppliers, Apple has effectively partnered with Vietnam’s government and people to build a skilled workforce. Hundreds of thousands of Vietnamese now assemble or help build Apple devices, and countless others sell Apple products or develop software for Apple’s platforms. These human capital benefits are among the reasons Vietnam actively courts Apple and its partners to deepen their roots in the country.

Government Relations and Policy

Apple’s relationship with the Vietnamese government is generally positive and mutually beneficial, centered on investment and compliance with local regulations. Vietnam’s government has openly welcomed Apple’s expanded presence. In April 2024, Prime Minister Phạm Minh Chính met with Tim Cook and lauded Apple’s investments; he even announced the formation of a special working group to support Apple’s operations in Vietnam . During that visit, Cook affirmed Apple’s long-term commitment, stating Apple “wants to boost its investment in Vietnam” and increase spending on local suppliers . Such high-level engagements indicate Apple is coordinating closely with Vietnamese authorities on its supply chain expansion. The government, for its part, often uses Apple as a showcase for Vietnam’s attractiveness to high-tech FDI (foreign direct investment). Officials frequently highlight that Vietnam is one of the few countries in the world where flagship Apple products are made, underscoring the country’s move up the value chain.

At the same time, Apple must navigate Vietnam’s regulatory environment, which has some unique requirements. One major policy is Vietnam’s Cybersecurity Law and data-localization mandates. Regulations updated in 2022 (Decree 53) require foreign tech companies to store certain user data on servers within Vietnam and to establish a local representative office . This policy is aimed at giving authorities more control over data and content. Companies providing online services (social media, e-commerce, cloud, etc.) are affected. While Apple is not a social media provider, its services like iCloud, App Store, and Apple TV+ do handle user data, and thus Apple must ensure compliance. After the law, Vietnam gave companies a year to comply once notified. Apple has reportedly taken steps such as registering a local entity (for the online store launch in 2023) and likely planning for data storage solutions to meet the law’s requirements. Apple’s Transparency Reports note that the Vietnamese government does make data requests; Apple, as globally, evaluates these case by case . Thus far, Vietnam hasn’t singled Apple out with any major public disputes on data, suggesting Apple is working quietly to satisfy legal demands (for example, possibly storing Vietnamese iCloud data in-country via trusted third-party data centers, if required).

Content and censorship is another area of government relations. Vietnam has strict controls on politically sensitive content and maps (especially regarding the South China Sea disputes). Apple has complied with certain requests, such as removing apps or content that violate local laws. For instance, when a Chinese-made app included the disputed “nine-dash line” map, Apple removed the app from the App Store in Vietnam after authorities intervened . Apple also presumably ensures that its Maps and Weather apps reflect Vietnam’s territorial claims when used locally (similar to how Apple adjusts maps per country norms). Compared to platforms like Google or Facebook, Apple has kept a lower profile on censorship issues in Vietnam, partly because its services (aside from app distribution) are less about user-generated content. However, Apple has faced some pressure from civil society: in 2024, environmental activists urged Apple to speak up about Vietnam’s jailing of certain climate experts . Apple did not publicly intervene, reflecting its usual stance of complying with laws but not overtly challenging government actions. The Vietnamese government, for its part, appreciates Apple’s mostly apolitical approach and its contributions to the economy.

In terms of investment policy, Vietnam has offered incentives to Apple’s manufacturing partners. Companies producing high-tech products can qualify for tax breaks – for example, new large projects might get corporate income tax holidays for the first few years and preferential rates thereafter. Provincial governments in Bac Giang, Bac Ninh, etc., have competed to host Apple suppliers by building infrastructure and quickening administrative approvals . When Apple (through Foxconn) needed additional land for factories, officials often expedited land leases and permits. The Prime Minister has even asked Apple to assist Vietnam in areas like renewable energy development – possibly encouraging Apple to invest in solar or wind power projects to supply its factories with clean energy . This aligns with Vietnam’s broader policy to get tech firms to contribute to sustainability and workforce training. Apple’s announcement of a clean water initiative for schools in Vietnam, mentioned during Cook’s 2024 visit, is an example of goodwill gestures that please local authorities .

Overall, Apple enjoys a favorable environment in Vietnam. The government’s stance is encapsulated by its desire for an “even greater presence” of Big Tech in Vietnam. In practical terms, this means Vietnam is likely to continue granting Apple and its partners the support needed – whether that’s infrastructural, administrative, or regulatory accommodations – to keep production growing. As long as Apple complies with key laws (like data localization and tax obligations) and contributes economically, Vietnam sees Apple as a valued partner in its industrial and digital development. This symbiotic relationship has helped Apple swiftly scale up in Vietnam and will likely deepen as Vietnam aims to be a major tech manufacturing hub. In coming years, we might see Apple further localized – potentially opening Apple Store retail outlets, increasing local content on services, and continuing to invest via suppliers – all under the watchful but welcoming eye of Vietnamese regulators.

Sources: Apple supply chain expansion and production forecasts ; Apple online store launch and retail channels ; Smartphone market share and consumer trends (Canalys data) ; Tim Cook visit and government engagement ; Data localization law and Big Tech in Vietnam ; Job creation and investment figures ; Local media on iPhone launch demand .