Reports have surfaced that Cupertino-based tech giant, Apple (AAPL, $174.55) is to begin manufacturing its products in Vietnam. Once again shining a light on its willingness to expand manufacturing outside of China, amidst the background of ongoing Covid lockdowns and rising US-China trade tensions. 

Apple suppliers Luxshare Precision Industry and Foxconn have started test production of the Apple Watch in northern Vietnam with the aim of producing the device outside of China for the very first time. Vietnam is already Apple's most important production hub outside of China, producing a wide range of flagship products for the American company, including iPad tablets and AirPods earphones.

Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets.