Nikkei Asia reported on Tuesday that Apple suppliers are negotiating to make the Apple Watch and MacBook in Vietnam for the first time. (via Reuters)

The report also said that test manufacturing of the Apple Watch has begun in northern Vietnam by Foxconn, a Taiwanese company, and Apple’s Chinese supplier Luxshare Precision Industry.

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The report added that progress in moving mass production to the country has been slow in part due to pandemic-related disruptions but also because producing notebook computers involves a larger supply chain. According to the report, Apple has asked suppliers to set up a test production line for the MacBook in Vietnam.

In addition to manufacturing iPad tablets, Apple has been moving some aspects of iPhone production from China to other regions, including India, where it began producing the iPhone 13 earlier this year.

Contract manufacturers providing American brands are increasingly relying on Mexico, Vietnam, and India, the second-largest smartphone market in the world, as they aim to diversify their production away from China.

Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, has experienced a significant chip shortage that has hampered manufacturing as bottlenecks from the pandemic persisted and the Ukraine war further strained logistics networks.