Apple is taking an unprecedented step by choosing Vietnam as the main production base for an entirely new product category – ranging from AI-integrated home security cameras and smart home control displays to motion-interactive desktop robots.

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For years, Vietnam has been the production hub for Apple's well-established product lines, such as AirPods, Apple Watch, iPad, Mac, and HomePod.

The move to produce a brand-new product range in the country right from the early stages reflects a strategic shift in the tech giant’s global manufacturing allocation.

Analysts from Nikkei and Bloomberg noted that Vietnam is rising from being an industrial satellite to becoming a technological hub, capable of participating more deeply in engineering design and product validation.

Despite a 20% US import tariff on goods from Vietnam, Apple is willing to absorb the cost in exchange for supply chain security and production flexibility in a country with political stability and a rapidly growing technical workforce.

The Vietnamese Government is also accelerating cooperation programmes on digital transformation, clean energy, and high-quality human resources development to meet the growing demand of the technology sector.

Apple’s expanding presence reflects a broader trend, as more global tech giants such as Google, Dell, and Goertek are increasing investments in Vietnam.

The Southeast Asian nation is being viewed as a strategic “balancing point” amid the US push for on-shoring manufacturing.

Despite reciprocal tariffs, international corporations recognise Vietnam’s skilled workforce and stable political environment as major advantages in an uncertain global context.

Major semiconductor players such as NVIDIA, Marvell, Synopsys, and Foxconn have also recently expanded their AI and chip-related projects in Vietnam.

According to Reuters, these firms are not only investing in production but also seeking local partnerships in engineering training, and establishing AI research and data centres, a sign that Vietnam is beginning to move up the global technology value chain.

Experts believe that Apple’s new generation of AI-enabled home devices produced in Vietnam will serve as a litmus test to determine whether the country can evolve into a true technology hub, rather than merely a low-cost assembly site.

If successful, this could pave the way for research and development and technology testing activities to take place directly there.

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