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Apple May Build $1 Billion Research and Development Center in Vietnam

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Apple may be planning to build a research and development center in Vietnam, reports Vietnamese site BizLive. Work on the R&D center, which will be located in the Vietnamese central province of Da Nang, was uncovered following a local government meeting on foreign direct investment.

danang.jpg
Da Nang, image via VnExpress​

Rumors earlier this year suggested Apple would invest up to $1 billion to build an Asia-focused research and development center in Vietnam, designed to "enhance its competitiveness over major global electronic manufacturers present in the country." Last October, Apple also established an Apple Vietnam LLC in Ho Chi Minh City, led by Gene Daniel Levoff, Apple's VP of corporate law who is also in charge of international operations.

Companies like Microsoft, Intel, and Samsung have had investment projects in Vietnam for several years, but the R&D center will be Apple's first major project in the country.

A final decision on whether the research center plans will move forward is expected in late August.

Article Link: Apple May Build $1 Billion Research and Development Center in Vietnam
 
Article Link
https://www.macrumors.com/2016/08/05/apple-vietnam-research-and-development-center/
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El Hikaru said:
I am thinking that this investment is something to do with the pile of money sitting outside of US which has to be spent outside of US.
Click to expand...

There is certainly an incentive to get these type of things done before they update the tax laws to the point where apple "can't" avoid taxes without looking really bad. In the mean time, just 200 more projects to go!
 
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Looks like Apple is bored....seriously. What are they investing? Guerrilla war tactics?
...unless they want to turn the planet into one big apple.
 
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Seriously though, it makes sense for Apple to scale up in countries where they can spend that overseas cash without extra penalty + get access to more engineering talent (usually for less money due to cost of living). It would be silly for the world's largest company to try to do EVERYTHING in Cupertino.
 
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Apple needs out of USA R&D,, offices, and production so when Trump get in power and demands Apple takes production to the USA, Apple can stick up a virtual finger and move everything to another country. ;)
 
With how China is pissing off their neighbors with territorial claims to the point that Made in China is being boycotted, it's good for Apple to diversify their manufacturing and R&D elsewhere in Asia.
 
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El Hikaru said:
I am thinking that this investment is something to do with the pile of money sitting outside of US which has to be spent outside of US.
Click to expand...

VanillaCracker said:
There is certainly an incentive to get these type of things done before they update the tax laws to the point where apple "can't" avoid taxes without looking really bad. In the mean time, just 200 more projects to go!
Click to expand...

Taxes is a bit more complicated in general. A business tends to pay more in taxes when operating income increases. It may not if there is a corresponding increase in operating expenses. Some of the investments would in fact offset it.

What this doesn't indicate is whether a particular project would make more sense in the US if funds could be moved from a foreign subsidiary to the parent company without any taxable event. This may not be the case. You don't know what options were investigated or what factors were considered.
 
mi7chy said:
With how China is pissing off their neighbors with territorial claims to the point that they're boycotting Made in China it's good for Apple to diversify their manufacturing and R&D elsewhere in Asia.
Click to expand...
It is a good idea to diversify in Asia, regardless.
 
Looks like a dirty trick good business tactic, move into the area after other big tech companies have been there for a while, poach all there now experienced staff! Still cheaper then employment in the west and skilled staff in your building. Win win.
 
Reason077 said:
Wow. Da Nang sure looks changed to since I was there ~15 years ago.
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:eek: Yeah, and it's massively changed from when my dad was deployed there when I was a baby 49 years ago! I have this mental image in my head of what Vietnam looks like from my dad's descriptions and from images I saw on the news as a kid. This pic knocks those mental images flat. And thank goodness for that.

I hope someday current war torn areas will look as beautiful and peaceful and prosperous. Heck, I hope that will be true of parts of the US that look badly torn up from economic devastation and drugs.
 
Fab. Maybe some Vietnamese folks might finally research and develop Apple Mail, Apple Safari, iMovie, ITunes, Apple Music etc?!!!
 
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