During his recent visit to the United States, Vietnamese Prime Minister Pham Minh Chinh made a visit to Silicon Valley tech giants including Apple Inc AAPL to discuss business, according to SGGP English.
What Happened: Chinh met Apple CEO Tim Cook and Intel Corporation INTC Executive Vice President Keyvan Esfarjani among others to woo them to set up a manufacturing unit in Vietnam.
The Vietnamese leader at the meeting with Intel's Keyvan talked about the significant role that the country plays in the company's supply chains. Keyvan also highly regarded Vietnam's favorable infrastructure and its skilled workforce.
According to the news outlet, Keyvan described Vietnam as a potential destination for tech firms to expand their operations, "especially when firms like Intel want to diversify their supply chains."
Meanwhile, with Cook, PM Chinh said the government is committed to creating a fair, transparent, and market-based business environment to help US firms and investors gain ground in Vietnam.
The Apple CEO reportedly also affirmed that the company wants to extend its supply chains in the country and involve capable domestic firms in Apple's supply chains.
Why It Matters: The development comes at a time when the COVID-19 ppandemic in the world's largest manufacturing hub, China, has disrupted supply chains for big tech companies.
Xi Jinping-led government's zero Covid tolerance policies have reignited conversations around whether there's a need to move production out of the country for foreign companies.
Recently, Apple also shifted some areas of iPhone production from China to other markets, including India, to reduce reliance on its Chinese supply chain.
Price Action: According to data from Benzinga Pro, Apple shares closed at $140.82, losing 5.64% during the trade on Wednesday, and Intel was down about 5% over the same period.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.