Apple holding off on Vietnam iPhone assembly over workers' living conditions

Posted:
in General Discussion edited August 2020
Apple is considering the possibility of bringing iPhone manufacturing to Vietnam, a report claims, after the Cupertino company visited a factory owned by assembly partner Luxshare to check the conditions of the facility.




Representatives from Apple visited Luxshare over the summer to check out the facility's quick construction and viability for iPhone production, according to Luxshare Foreign Affairs Manager Tang Due Bang. Local reports cites Bang as claiming the factory in Van Trung Industrial Park was inspected to ensure it was the right scale, had the correct facilities, and the available investment capital to start iPhone assembly.

"The Apple side continually surveyed the workshop of Luxshare in Bac Giang on iPhone production conditions," said Bang. "Apple Corporation is impressed by the speed at which our fast facility is built here. At the same time, through practical research, Apple highly appreciates the potential in Bac Giang province and hard-working workers."

The facility was one of a number of Vietnam operations working for Apple that sought financial support to expand their AirPods assembly lines in December 2019, funding which Luxshare evidently attained. According to Bang, the 30-hectare factory was constructed in 5 months after Apple's request to expand production.

Luxshare's investment in the Bac Giang province is said to have reached $270 million, and while it already as 28,000 workers, it would need to swell numbers to between 50,000 and 60,000 workers if it gains approval to make iPhones.

However, part of the facility has yet to meet Apple's requirements, specifically those relating to the on-side dormitories. It is unclear what requirements Luxshare missed, but it seems to be the main thing holding back the facility from gaining Apple's approval.

Luxshare is also seeing to expand its facilities further, with two more plots outside the industrial park for more dormitories currently seeking approval for construction from the local government.

Vietnam isn't the only place Luxshare wants to use for iPhone production. In July, it purchased an iPhone plant in China from Wistron for approximately $472 million.

Comments

  • Reply 1 of 14
    BeatsBeats Posts: 3,073member
    But iKnockoff users screeam that Apple hires slaves?

    Dumb logic. Apple doesn't even own these companies and these companies manufacture Apple knockoffs as well.
  • Reply 2 of 14
    maestro64maestro64 Posts: 5,039member
    These companies have not learned anything, why build housing, in the US no one cares if the people working in a manufacturing plant live in substandard housing. Companies in the US learned along time to stop building company towns.
  • Reply 3 of 14
    SpamSandwichSpamSandwich Posts: 33,407member
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
  • Reply 4 of 14
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
    So is China?
  • Reply 5 of 14
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
    So is China?

    Yeh, it is....
    But you can't base judgement on ideology rather than reality.
    The form of government makes little difference, some forms are better at certain circumstances and other forms are better at other circumstances.
    What counts is what they do and how they perform under existing circumstances.

    In this case, China and Vietnam are doing things well and therefor growing while their people are gaining better lifestyles while the U.S. has been headed in the opposite direction as class struggles enable the rich to get richer and the poor to become poorer.
    edited August 2020
  • Reply 6 of 14
    maestro64 said:
    These companies have not learned anything, why build housing, in the US no one cares if the people working in a manufacturing plant live in substandard housing. Companies in the US learned along time to stop building company towns.
    Talking about learning; show us what you've got yourself… Where do you think the workers will come from if the factories don't make sure there's anywhere for them to stay?

    And please go into some details here. You know; stuff like how their salaries are perceived when they go to the local bank for a loan to buy an apartment, what the renting situation is like, as well as the availability of land if they decide to build (or park a trailer). Please also add a bit about the public transportation for to commute to work; and maybe you could also add a bit about stores, buying groceries, and how that fits within the salary?
    radarthekatGeorgeBMac
  • Reply 7 of 14
    I'm happy to see that Apple is doing it right from the start as they are trying to not have to rely so much on the good mood of the CCP.
  • Reply 8 of 14
    SpamSandwichSpamSandwich Posts: 33,407member
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
    So is China?
    Maybe you won’t understand if you’ve never been there, but there are massive pockets of poverty-stricken people in China, despite the “wonders” of a pseudo-capitalistic communist China.
  • Reply 9 of 14
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
    So is China?
    Maybe you won’t understand if you’ve never been there, but there are massive pockets of poverty-stricken people in China, despite the “wonders” of a pseudo-capitalistic communist China.

    That's true.
    But the difference is:   China has (and is) raising millions of them out of poverty and into a solid middle class -- while the U.S. is ripping people out of the middle class and into poverty while it makes the rich richer. 
    muthuk_vanalingam
  • Reply 10 of 14
    maestro64maestro64 Posts: 5,039member
    svanstrom said:
    maestro64 said:
    These companies have not learned anything, why build housing, in the US no one cares if the people working in a manufacturing plant live in substandard housing. Companies in the US learned along time to stop building company towns.
    Talking about learning; show us what you've got yourself… Where do you think the workers will come from if the factories don't make sure there's anywhere for them to stay?

    And please go into some details here. You know; stuff like how their salaries are perceived when they go to the local bank for a loan to buy an apartment, what the renting situation is like, as well as the availability of land if they decide to build (or park a trailer). Please also add a bit about the public transportation for to commute to work; and maybe you could also add a bit about stores, buying groceries, and how that fits within the salary?
    The same way worker in the US find their way to work, it is call transportation, and yes these countries have transportation. The average person can ride their moped to work. Of they ride share, I been to third world countries and visited these factories and the people find ways to get to work. Look what Silicon Valley has done companies now run buses all over the place to get to people to work. These company do not need to set up companies towns to house workers. The only reason to do it to to control the employee so they have to spend 90% of their wages to cover room and board and everything else the company town charges these people to stay there. 

    If the people who complain about workers standard of living, really cared they would start in the US, where people who work in similar factory live in substandard housing, How many people do you see complaining about that to the company and the consumer buying those products. They can complain to the Government and they do and the governments does not care since people have choices, so their living conditions most times are their own choosing.

    My point is simple, these Asian companies if they want US companies to source product from them they have to stop the companies towns, it does not fly well with the complainers.
  • Reply 11 of 14
    maestro64 said:
    svanstrom said:
    maestro64 said:
    These companies have not learned anything, why build housing, in the US no one cares if the people working in a manufacturing plant live in substandard housing. Companies in the US learned along time to stop building company towns.
    Talking about learning; show us what you've got yourself… Where do you think the workers will come from if the factories don't make sure there's anywhere for them to stay?

    And please go into some details here. You know; stuff like how their salaries are perceived when they go to the local bank for a loan to buy an apartment, what the renting situation is like, as well as the availability of land if they decide to build (or park a trailer). Please also add a bit about the public transportation for to commute to work; and maybe you could also add a bit about stores, buying groceries, and how that fits within the salary?
    The same way worker in the US find their way to work, it is call transportation, and yes these countries have transportation. The average person can ride their moped to work. Of they ride share, I been to third world countries and visited these factories and the people find ways to get to work. Look what Silicon Valley has done companies now run buses all over the place to get to people to work. These company do not need to set up companies towns to house workers. The only reason to do it to to control the employee so they have to spend 90% of their wages to cover room and board and everything else the company town charges these people to stay there. 

    If the people who complain about workers standard of living, really cared they would start in the US, where people who work in similar factory live in substandard housing, How many people do you see complaining about that to the company and the consumer buying those products. They can complain to the Government and they do and the governments does not care since people have choices, so their living conditions most times are their own choosing.

    My point is simple, these Asian companies if they want US companies to source product from them they have to stop the companies towns, it does not fly well with the complainers.
    You're out of touch with reality; you might have been to these places, but it sounds like you don't even understand how it is for these people even on your local market.

    And on top of that the factory in Bac Giang has been recruiting since early this year, fighting hard to compensate for the shutdown of the factory in China (due to corona); which is something that few regions can just handle, unless they started out with an overcapacity to handle people there's no simple upscaling for a city to handle a new/expanding factory. Which included housing, transportation, roads, etc. Not to mention that your idea of everyone just buying mopeds isn't exactly realistic; they can easily cost the first 1-2 months of salaries, which is something that most people desperate for a job can't handle.
    GeorgeBMachippo
  • Reply 12 of 14
    GeorgeBMacGeorgeBMac Posts: 11,421member
    maestro64 said:
    svanstrom said:
    maestro64 said:
    These companies have not learned anything, why build housing, in the US no one cares if the people working in a manufacturing plant live in substandard housing. Companies in the US learned along time to stop building company towns.
    Talking about learning; show us what you've got yourself… Where do you think the workers will come from if the factories don't make sure there's anywhere for them to stay?

    And please go into some details here. You know; stuff like how their salaries are perceived when they go to the local bank for a loan to buy an apartment, what the renting situation is like, as well as the availability of land if they decide to build (or park a trailer). Please also add a bit about the public transportation for to commute to work; and maybe you could also add a bit about stores, buying groceries, and how that fits within the salary?
    The same way worker in the US find their way to work, it is call transportation, and yes these countries have transportation. The average person can ride their moped to work. Of they ride share, I been to third world countries and visited these factories and the people find ways to get to work. Look what Silicon Valley has done companies now run buses all over the place to get to people to work. These company do not need to set up companies towns to house workers. The only reason to do it to to control the employee so they have to spend 90% of their wages to cover room and board and everything else the company town charges these people to stay there. 

    If the people who complain about workers standard of living, really cared they would start in the US, where people who work in similar factory live in substandard housing, How many people do you see complaining about that to the company and the consumer buying those products. They can complain to the Government and they do and the governments does not care since people have choices, so their living conditions most times are their own choosing.

    My point is simple, these Asian companies if they want US companies to source product from them they have to stop the companies towns, it does not fly well with the complainers.

    Perhaps that's why things moved there.   American workers used to be hungry enough for a job that they would accept almost any conditions.  Working in a mill or a mine was hard, grueling and dangerous -- plus the company owned or controlled the places where people lived and shopped.   Today, not so much.

    It was actually a part that was added to the modified NAFTA agreement:   trying to even out wages and working conditions between Mexico and the U.S. so that U.S. workers could compete with Mexican workers without sacrificing their hard won gains.  It'll be interesting to see how that works out (from both sides of the border.)
    hippo
  • Reply 13 of 14
    tzeshantzeshan Posts: 2,351member
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
    So is China?
    Maybe you won’t understand if you’ve never been there, but there are massive pockets of poverty-stricken people in China, despite the “wonders” of a pseudo-capitalistic communist China.
    Very righteous. Keep using your imaginative words. News report saidLos Angeles is plagued with tens of thousands of homeless. Amazingly the local government hides them real well. Only individual homeless can be seen here and there. And according to Trump US is the number one nation in the world. 
    GeorgeBMac
  • Reply 14 of 14
    tzeshan said:
    Tim, Vietnam is a Marxist-Leninist socialist state... of COURSE they have run down facilities for their workers.
    So is China?
    Maybe you won’t understand if you’ve never been there, but there are massive pockets of poverty-stricken people in China, despite the “wonders” of a pseudo-capitalistic communist China.
    Very righteous. Keep using your imaginative words. News report saidLos Angeles is plagued with tens of thousands of homeless. Amazingly the local government hides them real well. Only individual homeless can be seen here and there. And according to Trump US is the number one nation in the world. 
    Based on your style of rhetorics my just as relevant argument about that is: There are right now about 40 birds eating their breakfast in my garden.

    That's about as relevant as your attempts at deflection and whataboutism.
    hippo
Sign In or Register to comment.