Google to develop and manufacture high-end smartphones in Vietnam

TAIPEI — Google will begin developing and manufacturing high-end smartphones in Vietnam this year, marking a significant shift as U.S. tech giants move critical production away from China.

According to a report by Nikkei Asia, the initiative encompasses the entire production process from start to finish, rather than just final assembly.

The move mirrors strategies recently adopted by Apple in India. It highlights a growing effort by major American corporations to establish complete supply chains in alternative locations to reduce their manufacturing reliance on China.

Google’s strategic expansion in Vietnam represents a watershed moment for the Southeast Asian nation’s ambitions to ascend the global technology value chain. By shifting focus toward "from-scratch" manufacturing and high-level research and development (R&D), the move signals that Vietnam is successfully pivoting away from its traditional role as a low-cost assembly hub and toward high-value-added technical segments.

This transition is a direct consequence of the broader "de-risking" trend and the ongoing migration of supply chains out of China. This policy trajectory, which gained momentum under the Trump administration, now enjoys broad bipartisan support in Washington. As American multinationals prioritize geopolitical stability and supply chain resilience, Vietnam has emerged as a primary beneficiary of the "China Plus One" strategy.

However, this influx of sophisticated investment presents Hanoi with a new set of structural challenges. Moving into high-tech production requires a depth of specialized human capital that the current domestic labor market may struggle to provide at scale. Furthermore, the country’s infrastructure—particularly the reliability of the energy grid and the efficiency of its logistics networks—is under increasing strain.

For Vietnam to sustain this momentum and remain competitive against regional rivals such as India and Indonesia, the government must move aggressively to resolve these bottlenecks. The success of Google’s venture will serve as a litmus test for whether Hanoi can translate geopolitical opportunity into long-term industrial modernization.

Google’s investment in Vietnam’s high-tech sector is opening a new door for high-skilled Vietnamese-American engineers and professionals looking to return home or lead emerging satellite startups. For a community that has historically supported the homeland through remittances and built its overseas presence through the nail salon industry and phở restaurants, this shift is significant. It rebrands Vietnam in the eyes of the diaspora—moving it away from its reputation as a low-cost outsourcing hub and toward its new identity as a rising global tech center. For professionals who may have originally built their careers in the U.S. via H-1B visas, this evolution offers a chance to bring their expertise back to a country that is rapidly moving beyond the traditional economic landscape of Little Saigon and into the future of global innovation.