Oh boy, more wind blown to the rumor mills grinding out hopes for a 3G iPhone, says we. But this one looks more promising, because it's allegedly pointing now at Foxconn, the manufacturers behind the first iPhone. The Taiwan-based company is expected to rev up its iPhone churning machines again, but this time for 3G-capable units that are reportedly slated to ship in June. Let's spin the mill faster and get a load of more speculations at the full story, shall we?

"Made in Vietnam" could be the newest thing you'll see printed on the back of your iPhones or Nintendo Wiis in the near future. Taipei-based Foxconn Electronics (Hon Hai Precision Industry), the world's largest contractor for electronics, announced that they will be expanding their operation to Vietnam.

Responsible for the production of products such as Apple's iPhone and iPod, as well as Nintendo's Wii console, Foxconn decided to continue to diversify their plant operations to Vietnam to maintain their cost-efficient business practices within the most efficient manufacturing area outside of China.

A deal was already signed last August 29 with Foxconn's chief executive Terry Gou and Vietnam's Ministry of Planning and Investment investing a US$ 5 billion contract into various high tech and supporting industries projects. Also, Foxconn has invested US$ 160 million in two plants in the Que Vo Industrial Zone, as well as hiring about 500 local university graduates with plans of hiring up to a maximum of 300,000 employees.

Tung Kim Nguyen, a partner at Indochina Capital, had this to say about Vietnam:

Vietnam is the next outsource manufacturing centre of Asia, this is because of a China-plus-one strategy that manufacturers are adopting and a response to anti-dumping suits that will be hitting the Chinese point of origin manufacturers hard over the next few years

Intel has already had their eye on Vietnam for some time. They announced that they would build a US billion plant near Ho Chi Minh, prompting other manufacturing giants such as Toshiba and Matsushita to pledge future investments.

A couple of weeks ago, Apple responded to iPod "sweatshop" accusation and reassured the public that the company is committed to ensuring that workers are treated with respect and dignity. It didn't take long for Shanghai Business Review to defend Apple to defend Apple, even saying that quality of factories in China are better than in Europe. Of course, the accused, Foxconn had already spoken. And it continues to speak, but this time, bashing domestic and international media for the irresponsible reporting without independent verification of the actual working conditions in Foxconn's iPod plants.

Edmund Ding, speaking on behalf of Foxconn Electronics (registered trade name of Hon Hai Precision Industry), has submitted a filing with the Taiwan Stock Exchange strongly criticizing the media for erroneously reporting less than humane conditions in its iPod factories in China. Again, Foxconn has denied allegations of sweatshop conditions in light of reports that the company has admitted to breaking labor laws in China, by asking employees to work 80 extra hours every month and only giving an equivalent of $50 in pay.

In response, Ding stated that Foxconn pays an overtime rate equivalent or better than that required by Chinese laws. He further stated that "Foxconn does not comment about customer information, much less make a public announcement on behalf of a customer."

Allegations made against Foxconn's supposed sweatshops/factories for the Apple iPod have already been responded to by Foxconn. UK-based The Mail reported that workers in Foxconn factories most especially those in the company's Longhua factory were operating in harsh conditions. Employees were working 15 hours a day for a salary of $50 per month and they slept in quarters that housed 100 people each.

Now Apple has decided to take matters more seriously and has begun an audit of Foxconn's China plant. According to Apple spokesman Steve Dowling, this thorough audit will look into the allegations of worker abuse. The employees' working and living conditions will be investigated and interviews with managers and employees alike will be conducted to know if Foxconn really complies with wage and overtime regulations. Other areas necessary to determine Foxconn's compliance to Apple's supplier code of conduct will also be investigated.

Foxconn Electronics, the component manufacturer for Apple's iPod, denied allegations that the company's factories were "sweatshops". The company cited "huge discrepancies between the truth and the claims in the report."

Last week, UK-based The Mail reported that iPods were being made in Chinese factories where the employees worked under harsh conditions. According to the allegations, one factory at Longhua employed 200,000 workers each working 15 hours a day for US$50 monthly. During off-hours, these workers lived in rooms which housed 100 people each.

Foxconn said its workforce is only about 160,000 employees worldwide. The company maintained it abides by the employment law in China. Furthermore, Foxconn issued a statement saying it has continued to make improvements to workers' living conditions, providing safe and well-equipped dormitories complete with free laundry service, sports facilities, libraries, and other facilities.

Foxconn is  the largest manufacturer of PC connectors in Taiwan, and a leading manufacturer of connectors and cable assemblies in the world. In addtition the company also manufactures enclosures, primarily for desktop PCs and PC servers.