Apple Inc’s key supplier and assembly partner Foxconn is said to be considering setting up a factory in Vietnam because of the trade war between the United States and China.

Interviews conducted by Reuters pointed to Vietnam and Thailand as preferred locations for a new Foxconn factory to avoid any sanctions due to the trade conflict.

On November 22, Vu Tien Loc, head of the Vietnam Chamber of Commerce and Industry, said that Foxconn and the Hanoi People’s Committee will be coordinating on the opening of a manufacturing plant in Vietnam to avoid any negative impacts from the US-China trade war.

Foxconn refused to comment on current and potential customers, as well as any of the products they manufacture.

Meanwhile, senior Thai officials have also been attempting to lure Foxconn to invest in their country, which wants to develop its high-tech sector.

Earlier this year, the heads of Foxconn, a multinational company based in Taiwan, said the trade war was the biggest obstacle they have ever faced. Leaders of the company have been looking at ways to minimize any impacts from the trade dispute between Washington and Beijing.

According to Chinese media, Foxconn currently has 270,000 workers in China with more than 100,000 located in Longhua in Shenzhen. Last year, the average wage of Foxconn workers in China amounted to 6,800 yuan (about US$983).