Goertek to invest another $280 million in Vietnamese consumer electronics subsidiary

January 16, 2024 | 10:24

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AirPods maker GoerTek has plans in place to invest an additional $280 million in the establishment of a wholly owned subsidiary in Vietnam to manufacture consumer electronics products.

Goertek to invest another $280 million in Vietnamese consumer electronics subsidiary

According to its filing with the Shenzhen Stock Exchange on January 15, Goertek said that the new Vietnamese subsidiary will specialise in manufacturing consumer electronics products, including AirPods, smartwatches, and VR and augmented reality devices (tentative). The operational date for the new business is yet to be announced.

This investment is based on Goertek's future development plans and customer needs. It will serve the Chinese assembler's business expansion and long-term operations in the country.

"The project will make full use of the local resources in Vietnam to enhance the company's overall competitiveness and achieve its long-term development goals," Goertek noted.

Goertek is among the major Chinese suppliers enlisted by Apple to assemble the Vision Pro mixed-reality headset.

The new subsidiary is to be located in Bac Ninh Province, which is home to major consumer electronics and semiconductor companies, including Samsung Electronics.

Goertek's investment follows Apple's push to diversify its supply chain away from China. According to research by TD Cowen, Apple's suppliers have spent around $16 billion on diversifying production assets away from China to India, Mexico, the US, and Vietnam since 2018.

Accordingly, Apple supplier Luxshare-ICT is pouring an additional $330 million into its electronic component manufacturing project in the northern province of Bac Giang. Furthermore, in June 2023, Foxconn also received investment certificates for two new projects in Quang Ninh, with a total capital of $250 million.

Goertek commits additional $306 million to its multimedia equipment project in Bac Ninh

Goertek, one of three major suppliers for Apple in Vietnam, has poured additional funds into its project in the northern province of Bac Ninh.

Chinese conglomerates express strong interest in expanding investments in Vietnam

Top Chinese groups, including Texhong Group, Goertek Group, and Energy China Group, have shown significant enthusiasm for expanding their investments across various sectors in Vietnam, signalling the country's growing appeal as a lucrative business destination.

Goertek announces major investment boost for Bac Ninh

Jiang Bin, chairman of Goertek Group, revealed plans for the company to significantly increase its investment in Bac Ninh at a meeting on October 24, potentially tripling or even quadrupling the firm's current financial commitment in the northern province.

By Thanh Van

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