Taipei-based Foxconn, officially known as Hon Hai Precision Industry, has leased another 45-hectare plot of land in northern Vietnam to expand its operations, South China Morning Post (SCMP) reported.

SCMP, a Hong Kong newspaper, quoted Foxconn's stock exchange documents released on Tuesday last week as saying that the Taipei-listed company signed a lease agreement with Saigon-Bac Giang Industrial Park Corp (SBG) to use a 45-hectare plot of land in Bac Giang Province for about US$62.5 million to "meet operational requirements and expand production capacity."

The new site is situated at Quang Chau Industrial Park in Bac Giang, east of Hanoi. The new lease will run until February 2057.

So far, Foxconn has already manufactured some products for Apple, including AirPods, Apple Watches, and some iPad production.

Currently, it is not yet clear which Apple products will be manufactured by Foxconn at the new venue.

At the end of December last year, the Apple Insider website, citing private sources, revealed that Foxconn had planned to move some MacBook Pro production to Vietnam in mid-2023, which would be a first for that product category.

The firm's new lease in Vietnam is the latest attempt by the Taiwanese conglomerate to diversify its production chains away from China to mitigate risks of economic and geopolitical fallout amid increasingly strained U.S. - Chinese relations in recent years.

Not only Foxconn Technology Group but many other suppliers to Apple have moved some of their manufacturing to Vietnam from China.

Last August, the company signed a lease agreement with Saigon-Bac Giang Industrial Park Corp to use a 50.5-hectare plot of land to build a new factory, also based at Quang Chau Industrial Park. 

About 30,000 workers will be hired once the construction of the factory is completed, sources told Tuoi Tre (Youth) newspaper.

At the signing ceremony between Foxconn Group and Saigon-Bac Giang Industrial Park Corp last year, Le Anh Duong, chairman of the Bac Giang People's Committee, stressed that Foxconn has become one of the province's 'best friends' over the past 15 years.

The provincial chairman added that Bac Giang has done its utmost to improve infrastructure and meet investors' expectations, hoping that Foxconn's business will run smoothly in the near future.

In recent years, many companies under the auspices of Foxconn Technology Group, such as Fuhung, Fuyu, and Fukang, have invested in Quang Chau Industrial Park.

To date, Foxconn has been the largest investor with foreign capital operating at the industrial park, reaching about $773 million.

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