Apple is in talks with Vietnam to launch the Apple Watch and MacBook to diversify production outside of China, Japanese newspaper Nikkei reported.

According to her sources, Apple suppliers have begun producing Apple Watch in a test mode in northern Vietnam. The company also asked suppliers to set up a test production line for the MacBook, but the process of moving mass production has been slow due to the pandemic and the long supply chain of laptop components.

Vietnam is already Apple's largest manufacturing center outside of China. Vietnamese factories produce iPads and AirPods.

Apple and its suppliers did not respond to a newspaper request for comment.