Shulou(Shulou.com)11/24 Report--

Thank CTOnews.com netizens for sharing and MissBook clues delivery! CTOnews.com, November 20, Indian media Business Standard reported that Apple supplier Lixun Precision has abandoned its plan to invest in a factory in India after three years of failed attempts to expand its business in India.

According to the report, Lixun Precision has decided to transfer 330 million US dollars (currently about 2.383 billion yuan) of investment to Vietnam's Bei Jiang Province.

In contrast to the delays of the Indian government, the Vietnamese government immediately approved the investment last week, bringing its total investment in Vietnam to $504 million (CTOnews.com Note: currently about 3.639 billion yuan). The Indian media pointed out that "this is a loss for India."

According to Indian media reports, Lixun Precision set up an office in India in 2019 and plans to acquire a defunct digital products manufacturer in the southern Indian state of Tamil Nadu. Lixun Precision plans to invest 7.5 billion rupees (currently about 650 million yuan) in the production of iPhone components and so on. However, foreign direct investment (FDI) approval for the project has been delayed. According to sources familiar with the development of the project, Lixun precision executives' visas to India have been refused many times.

On November 9, the Management Committee of Vietnam's Pak Giang Industrial Park announced that Lixun Precision will invest an additional US $330 million in the province to build new production facilities.

In fact, similar cases have occurred in other industries. BYD told its Indian joint venture partner that it would shelve a $1 billion new investment in electric vehicles after its investment proposal was reviewed by New Delhi, Reuters reported on July 28, citing people familiar with the matter. Following media reports, BYD plans to enter the manufacturing and assembly business of electric vehicles in Vietnam.

A senior Indian industry insider, who spoke on condition of anonymity, told the Global Times that the situation had seriously affected the normal operation and confidence of Chinese companies in India. "India is not the only option for Chinese companies to expand globally, and given the current situation, choosing other markets seems to be a prudent decision," he said.

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