PM supports Apple's plan to build database center in Vietnam
PM Nguyen Xuan Phuc said he supports Apple's plan to build a database center in Vietnam during his meeting with Apple CEO Tim Cook in Davos, Switzerland on January 23.
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PM Phuc congratulated the group on its successful investment and business operation in Vietnam. He also voiced his backing for the plan on database center establishment.
Three years ago, domestic and international press reported about a US$ 1 billion database center of Apple in Vietnam. Accordingly, Apple had two options of Ha Noi or Da Nang.
The establishment of the database center is part of the group’s bid to reduce its reliance on third partners namely Amazon and Microsoft.
This will be the second project of Apple in Vietnam. Earlier, in October 2015, Apple invested US$ 673,000 to set a company named Apple Vietnam LLC in HCMC.
Apple was said to be relatively slower than its peers including Samsung and LG (from the RoK) and Microsoft (the U.S.).
Samsung invested over US$ 11.2 billion in Thai Nguyen and Bac Ninh provinces in Vietnam. The group is building a research and development center in Vietnam.
Meanwhile, LG LG Electronics poured US$ 1.5 billion in Hai Phong. Microsoft moved its mobile production from China, Hungary, and Mexico to Bac Ninh province in 2014.
Experts assessed that Vietnam has emerged as a key market of Apply in the context that large markets including China, the U.S., and India showed signs of saturation and weak purchasing power.
In spite of higher costs in comparison with average incomes and spending budgets of customers, Apple phone sales in Vietnam are impressive.
Counterpoint Research reported that between Q2, 2017 and Q2, 2018, Apply owned over 5pc of Vietnam’s smart phone market.
Apple Tim Cook also forecast that the group will earn its record revenue in Vietnam. Accordingly, the group expects to earn high revenues in key markets including the U.S, Cana, Mexico, Europe (Germany and Italy), Asia Pacific region (the RoK and Vietnam).