Apple is shifting some iPad production from China to Vietnam for the first time ever, according to Nikkei Asia
Apple is moving some iPad production out of China for the first time amid ongoing disruption caused by lockdowns in cities such as Shanghai, Nikkei Asia reported.
The move, planned last year but delayed by Vietnam’s own COVID surge, highlights the importance of Vietnam for Apple in its ongoing quest for supply chain stability : BYD, a Chinese manufacturer and major supplier of iPads, will soon start producing a small number of the tablets in Vietnam, according to the report.
The iPad would be the second major Apple product series to be manufactured in Vietnam after AirPods Pro 2.
Apple also asked several China-based manufacturers to stockpile components parts such as circuit boards and chips to safeguard against future supply disruptions and ease disruptions caused by ongoing COVID-19 lockdowns, Nikkei reported.
Vietnam’s Economy to Benefit Most from RCEP
A recent report from the World Bank offers a thorough analysis of how the RCEP can impact the economic atmosphere of its country members, including Vietnam.
The Regional Comprehensive Economic Partnership (RCEP) agreement officially took effect on January 1, 2022. The countries that belong to RCEP account for almost one-third of world GDP and world population, and one-quarter of world exports and imports. If implemented successfully, it can have a considerable impact on not only Vietnam but the world’s economy.
Like several of Vietnam’s FTAs, the RCEP is a modern trade agreement taking countries of different sizes, populations, and GDP into account. Documents from the World Bank forecast that countries part of the RCEP will see GDP increase by 1.5 percent.
Economists note that the deal could add almost US$200 billion to the global economy by 2030. Nevertheless, it is important to note that it will take years to see the benefits of the RCEP and it may not be as significant as the CPTPP and EVFTA for Vietnam.