APPLE

VIETNAM
CHINA
INDIA

MANUFACTURER
TEAM 2
services

timeline
VIETNAM INDIA CHINA
 VIET NAM
Nature
situation

Economy VIETNAM

Politics & Legal

 VIETNAM’s NATURE
 LOCATION
• Vietnam is surrounded by a coast line of about
3200km.

situation
• Vietnam is located on important crossroads of
international sea and airways with many seaports. VIETNAM

• Viet Nam is also the gateway to connect Laos,

Thailand ,Cambodia, China, Maylasia,
Phillippines, Indonesia,…
=> A good location for trade, helps exchanging and
transportation of goods or material easy and
convenient.
 VIETNAM’s NATURE
Viet Nam Population Structure in 2018

 POPULATION

situation
6%

25%

Under 15
• Vietnam is in a "golden population Between 15 and 64

structure". Above 64

VIETNAM
69%
• Human resources lack of skilled labor
and have low productivity.

=> Viet Nam offers a large supply of labor, the quality is not relevant to
such a high technological company as Apple.
 VIETNAM’s ECONOMY
 PRODUCTIVITY

Productivity of some ASEANers 2017 (USD/person)

160,000
141,342
140,000
120,000
100,000 VIETNAM
80,000
56,215
60,000
40,000
23,390
17,449
20,000 11,320 9,894
Viet Nam Productivity between 2011 and 2017 0
Singapore Malaysia Thailand Philippines Laos Viet Nam

=> Despite having increased , productivity in Viet Nam’s economy is not high
enough to make Apple’s manufacture become effective.
 VIETNAM’s POLITICS & LEGAL

 POLITICS: Vietnamese politics follows the single-party

Socialist Communist, no terrorism, conflict among
people,…
→ STABLE
VIETNAM

 LEGAL: Policy has many advantages for investment of

foreign company such as: reducing profit taxes,
preferential land policy,…

=> Politics and legal in Viet Nam is stable for long- term investment.
 NATURE

CHINA
CHINA

ECONOMIC

POLITICS AND
LEGAL
 CHINA’s NATURE

POPULATION Labor by occupation

 High population (18,54% of the world)
with provide over 3.45 billion (2017

analysis
est.) Worker (ranked first in the world)
27.7
with 28,8% Working in manufacturing
43.5
and construction technology => high CHINA
labor source
 Low labor cost:Among with VietNam
and India, china is the lowest labor cost 28.8
country in the world => minimum the
cost=> low price
 Working-age population is shrank Agriculture Industry Service
since 2012 and is expected to continue
to decline in 2018=> labor cost
increase, need the substitute of
technology
 CHINA’s ECONOMY

GDP GDP by sector

2017
7.90%
 GDP ranking second in the world, only

analysis
after American, althouh the growth rate
slow down china is considered the
world’s secondary biggest industry. 43.50% 51.60%
CHINA

 GDP from sector 2 (marnufacturing

and construction) represented 43,5% of
Service Industry Agriculture
the total => the country forcus in
manufacturing

=> China is now the factory of the world

 CHINA’s ECONOMY

 China exports of goods and services as percentage of GDP is 19.64% and imports of goods and
services as percentage of GDP is 17.42%.
 The world’s largest exporter by value, China shipped US$2.272 trillion worth of products around the
globe in 2017. That dollar figure represents roughly 14.2% of overall global exports estimated at

analysis
$15.952 trillion one year earlier in 2016.
 Partner country: US, Hong Kong, Japan, South Korea, Vietnam
CHINA
 Trade war: October was the first full month after the latest US tariffs went into effect. China's trade
surplus narrowed to USD 34.01 billion in October of 2018 which is slightly fallen compare to the
same month last year and the month before.
 Imports jumped 21.4 percent year-on-year to USD 131.83 billion while exports increased at a slower
15.6 percent to USD 159.72 billion.
 The trade surplus with the US, China's largest export market, narrowed to USD 31.78 billion in
October from a fresh record high of USD 34.13 billion. Export growth remained robust in the third
quaters despite the ongoing trade war between China and the United States.

=> China manages to hold the balance trade surplus, but when the demand is shoften, it will face difficult.
 CHINA’s POLITICS & LEGAL

 China enjoys a relatively stable government because of

analysis
several reasons
 The presence of a dominate Communist Party
CHINA
 The fundamental structure of the government
 The level of censorship
 The Chinese citizens are underneath
 CHINA’s POLITICS & LEGAL

Us tariff affect:
 The Chinese government has been know to incite boycotts of
foreign brands: Lotte Group => Apple could be next

analysis
 Company’s trend:
MOVING OUT: Inventec (The AirPod assembler)
UNEXPECTED OPPORTUNITIES: company from CHINA
Taiwan,...
A DIRECT HIT: Delta Electronics (power components for
Apple's iPhones and MacBooks)
INDIRECT IMPACTS

=> More or less affects, company will get damaged by the

increasing tension.
 INDIA’s NATURE

LOCATION & POPULATION:

The Indian subcontinent ancient Indian river civilization

analysis
important trade routes, has become commercially and
culturally rich
=> With long river, favorable for waterway INDIA
 7th largest in the world with 3,280,483 km2
=> Space for manufacture
 2nd largest in the world with 1.31 billion people
=> Labor with trained engineers - a result of the Indian
education system

=> Advantages for transporting materials and product.

INDIA’s ECONOMY

analysis
INDIA
After the United States and China, India 3rd
largest economy in the world.
GDP from MANUFACTURING in about 6
recent years increases significantly
=> INDIA is an ideal market for
manufacturing industry
 INDIA’s ECONOMY

APPLE does not set foot in the top 5

smartphone makers in India.
=> Fierce competition for APPLE to

analysis
enter

INDIA
 INDIA’s POLITICS & LEGAL

Recently, the government launched a campaign calling

for support for domestic production and products
labelled "Made in India". Indian authorities are trying to

analysis
force smartphone manufacturers to open their
assembly plants in the country by raising import tariffs
on mobile phones but reduce or eliminate import tariffs INDIA
of material
=> Tariff barriers continue to rise, it is not hard to
accept that Apple has not fully embraced iPhone
production in India
 OVERALL
Country China India Vietnam
Nature:
LOCATION + + +
POPULATION + +

Economy:

analysis
GDP + + +
PRODUCTIVITY + -

Politics - - +
Legal +

APPLE SHOULD INVEST IN VIETNAM

 SHORT TERM:
- Train simple skills chores for workers
 LONG TERM:
- Technical transference of manufacturing
- Train high-tech skills for labor