Facebook parent Meta will produce its next-generation virtual and augmented reality headsets in Vietnam, creating more than 1,000 jobs, the company said Tuesday.

The announcement comes as Vietnam looks to boost its attractiveness as a destination for investment by the world's biggest companies and a key part of the global supply chain.

Speaking at a tech conference in Hanoi, Meta's global affairs president Nick Clegg said the firm would focus on the production of the Quest 3S headset in the Southeast Asian country.

"We will, with our local partners, be manufacturing them here in Vietnam, and we estimate that this will create well over 1,000 new jobs," he said.

Communist Vietnam -- long a low-cost destination to make clothes, shoes and furniture -- is  eyeing a rapid climb up the global supply chain and last week the government said Elon Musk's SpaceX plans to invest $1.5 billion in the country.

Vietnam's top leader To Lam used a trip to New York last month to meet bosses from Apple, Meta and IT firm Supermicro.

He also met President Joe Biden, a year after the US leader made a high-profile state visit to Vietnam to boost diplomatic and trade ties.

Vietnam is particularly intent on developing its capabilities in the lucrative chip industry, with global supply chain shocks and fears about US reliance on China for key resources boosting investment there.

Meta's Facebook is widely used in Vietnam and Clegg said the nation was among the global leaders in using its Messenger platform "not just to send messages to family and friends, but actually communicate with businesses and so foster trade and commerce across the country".

But Facebook has also faced criticism from human rights groups in recent years for blocking content deemed illegal by the country's government.

Facebook is a popular platform for activists in Vietnam, where all independent media is banned.