Vingroup, one of the biggest listed firm in Vietnam, has shared their plan on making its second smartphone factory in Hanoi. This time, the corporation will take the matter more serious, with the capacity of manufacturing 125 million units per year.
This new factory will extend Vingroup’s 5 million units from its first facility in northern Haiphong. The construction is expected to be completed early 2020. The fresh units will help fulfilling the demands from Europe and United States, as VinSmart has already introduced their first smartphone lineup in Spain not so long ago.
After a period of deploying and participating in the smartphone manufacturing industry, our products have been positively received by the market. We received many processing orders from major partners in Europe and the United States. That’s why we have invested in a factory with 25 times the capacity of our current factory in Haiphong, to meet with domestic and international demand.Mr. Nguyen Viet Quang, CEO of VinSmart
A company spokesman, however, declined to provide the names of the European and U.S. partners when asked.
This is a very aggressive step from VinSmart, who wish to dominate not just the home ground but also the foreign markets. The factory is said to partner with a lot of multinational corporation such as Qualcomm, Google… to get its hands on the certifications, and also the manufacture facilities and process. These will help automating the factory processes, and reducing the need of human labors, increasing the efficiency while keeping the operating costs low.
Vsmart smartphones use chips from Qualcomm and run Google’s Android operating system, and went on sale at a price of 3.39 million dong ($145) to 6.59 million dong ($282). In March, the company began selling Vsmart phones in Spain and planned to expand into other European markets. Its phones went on sale in regional neighbour Myanmar last month.