November 5, 2015.
On October 28, 2015, Apple Inc. opened a subsidiary company in Vietnam, one of the fastest growing markets for smart phones in Asia. Apple Vietnam Limited Liability was registered with an initial capital of 15 billion dong ($672,194), according to Vietnam’s national business registry website. This company, which is based out of Ho Chi Minh City, will “conduct wholesale businesses of various products including its signature smart phones, provide information technology and maintenance services as well as advising services,” according to its website. Apple has come at a strategic moment, because according to the most recent official data from the Information Ministry, the amount of mobile phone users in Vietnam rose 26% to 124 million users from 2009 to 2013. Not only that, but two years ago, the amount of internet users exceeded 30 million, which was a third of the population at the time. Apple’s strategic investment may soon compete with its rival Samsung, who has already invested billions of dollars to build smart phone and electronic products factories in Vietnam.
Louie Nguyen, CFA is the CIO of San Diego-based Soledad Investment Management. Soledad invests qualified clients’ assets in markets around the world, including Vietnam.