Vietnam’s realty conglomerate Vingroup has unveiled its plan to invest in the production of electronic devices, starting with smartphones, as the next step in its expansion in industrial production.
Vingroup, which has interests in real estate, retail, hotels, e-commerce, healthcare, education, agriculture and car manufacturing among others, said in a statement on Tuesday it had officially decided to invest in its smartphone brand Vsmart.
Following its carmaker Vinfast, the conglomerate established VinSmart Co. with a charter capital of VND3 trillion ($132 million).
VinSmart will operate in two main areas including the production of smart electronics, beginning with smartphones with the brand name Vsmart, and research, experimentation and application of artificial intelligence (AI), automation and new generation materials .
The Vsmart plant is set to be built at the VinFast automobile complex in the Dinh Vu - Cat Hai economic zone in the northern city of Hai Phong.
Currently, Vingroup is working with the world's leading consulting companies to hire design consultants, find qualified professionals, purchase the right to design smartphone components, and buy equipment chains for production.
“The cooperation with leading partners will ensure the production process of Vsmart technology to be equipped in the most modern and optimal way to optimize efficiency and ensure product quality,” Nguyen Viet Quang, vice-president and general director of the conglomerate, said.
About the second area, VinSmart will institute research centers and buy patents for experimental implementation in Vietnam to be able to put those inventions and technology into production and practical life, according to Quang.
“We want to invest heavily in research and application of new technologies and techniques to contribute to promoting the appearance of Vietnam on the world map of technology,” the Vingroup’s leader said.
“Engaging in high-tech and complex fields such as the manufacture of smartphones also confirms Vingroup's determination to move toward knowledge- and science-based production that contributes to improving the economy of the country."