Investing in Vietnam before Goertek and Luxshare, Foxconn has the highest revenue in Big3. But Luxshare’s revenue in the last 3 years has grown by 3 digits and has surpassed Goertek.
In a report sent to customers on September 21, analysts of JP Morgan forecast that Vietnam will contribute 20% of the total production of iPad and Apple Watch, 5% of MacBook and 65% of AirPods by 2025.
“Vietnam is emerging as a center for manufacturing components and electronic manufacturing services (EMS) for small-volume products (Apple Watch, Mac, iPad) and is becoming a manufacturing hub for AirPods. main,” the JP Morgan report reads.
In Vietnam, Big3 outsourcing manufacturers for Apple include Foxconn, Luxshare and Goertek. If Foxconn (Hong Hai Science and Technology Group) is often called Apple’s iPhone assembler, Luxshare and GoerTek are often known as the company that produces Airpods for Apple.
Investing in Vietnam before Goertek and Luxshare, Foxconn has the highest revenue in Big3, but the growth rate of Luxshare and Goertek is really “remarkable”. Especially Luxshare when revenue in 3 years 2019 – 2021 all grew 3 digits to by 2021, surpassing Goertek.
In 2021, the total revenue of Big3 in Vietnam is up to 294,000 billion VND (equivalent to 12.7 billion USD).
Foxconn doubles the number of factories in Vietnam within 3 years
Foxconn is present in Vietnam very soon. From January 2007, right after Vietnam joined the World Trade Organization (WTO), Foxconn opened its first company – Funing Precision Component Co., Ltd. located in Que Vo Industrial Park (Bac Ninh).
After 1 month, the second member, Fuhong Precision Component Co., Ltd. was established, located in Dinh Tram Industrial Park (Bac Giang). Funing registered to manufacture electronic and telecommunications products and equipment, while Fuhong produced electronic components.
It was not until 8 years later, in 2015, that the third member, New wing Interconnect Co., Ltd. was born, continuing to choose Bac Giang as the “residence”. Van Trung Industrial Park is the place where New Wing manufactures, assembles and sells electronic components.
However, within 3 years of 2019 – 2021, Foxconn continuously opened 3 new companies: Competition Team Technology (Quang Ninh), Fukang Technology (Bac Giang) and Fuyu Precision Technology (Bac Giang), doubling the number of members. members in Vietnam increased to 6.
By 2021, Fuyu contributes 1 billion USD to Foxconn Vietnam’s revenue and Competition Team Technology brings in more than 4,300 billion VND. Fukang (built with the goal of producing Macbook and iPad) was just established in early 2021, so it has not generated any revenue.
Foxconn’s process of increasing capital into Vietnam has been accompanied by strong growth. If in 2016, Foxconn’s revenue in Vietnam was less than 39,000 billion VND, by 2021, revenue has increased to nearly 128,000 billion VND (equivalent to more than 5.5 billion USD).
In which, Fuhong and Funing contributed the most.
As of early 2021, Foxconn has invested 1.5 billion USD in Vietnam and recently said it can pour another 300 million USD into the factory in Quang Chau Industrial Park – where the Fukang factory is being built. The fact that Foxconn plans to expand investment in Vietnam also coincides with the information that Nikkei Asia recently released about Apple’s negotiations to bring Apple Watch products and Macbook laptops to production for the first time in Vietnam.
Luxshare ICT – Late arrival, the fastest increase
As the latest enterprise to come to Vietnam, in 2016, Luxshare opened its first company in Quang Chau Industrial Park (Bac Giang). By 2019, only 3 more factories will be built in Van Trung Industrial Park (Bac Giang) and VSIP Nghe An. Therefore, from 2017 – 2019, Luxshare Vietnam’s revenue only comes from the factory in Quang Chau. From 2020, when the factory in Van Trung generates revenue and contributes more than VND 27,800 billion, Luxshare’s results begin to skyrocket.
In 2021, each of these factories will continue to generate more than 40,000 billion VND and more than 4,000 billion VND from Nghe An factory, helping Luxshare Vietnam to reach 90,261 billion VND (nearly 4 billion USD) in revenue, up 130% and surpassing Goertek.
Dubbed “little Foxconn”, Luxshare’s continuous 3-digit growth is expected to put pressure on Foxconn’s $10 billion revenue plan.
Goertek leaps forward to produce Airpods outside of China for the first time
Although there are only 2 factories in Que Vo Industrial Park (Bac Ninh), in 2021, Goertek’s revenue in Vietnam has reached more than 3.3 billion USD. Goertek Vina Co., Ltd is the first company, established in 2013, and is the only source of revenue.
In 2019, Nikkei reported that China’s GoerTek Company will start testing the production of new generation Airpods at its factory in Northern Vietnam in the summer. The move marks the first production of Apple’s wireless earbuds outside of China.
Until 2020, when Goertek Vina Science and Technology Co., Ltd comes into operation, Goertek’s production activities in Vietnam will be “concentrated” here.
As a result, Goertek Vina Science and Technology’s revenue skyrocketed while Goertek Vina’s revenue gradually decreased and then plummeted to more than 2,000 billion in 2021.
In March 2022, Goertek Vina continued to expand its investment to more than 305 million USD in Bac Ninh, bringing the total investment capital of Goertek Vina in Bac Ninh province to more than 565 million USD.
Information from Gortek said that by the end of February and beginning of 2022, the industrial production value of the Company reached nearly 400 million USD, the revenue reached over 450 million USD, the export value reached over 487 million USD, using regular 27,881 employees.
The main products are manufactured in Bac Ninh province to supply large corporations such as headsets and wireless headsets, online conference phone systems, VR headsets, Flycams, and copper. smart meters, PCBA boards and other types of multimedia audio products.