Vietnamese conglomerate Vingroup announced on Sunday afternoon that it will stop manufacturing smartphones and televisions, focusing instead on producing equipment for its carmaking unit's vehicles.
Its VinSmart smartphone business, established in June 2018, will start making ‘infotainment’ features for cars manufactured by VinFast, the group's automaker, to render them more competitive in the global market, the company said in Sunday’s statement.
VinSmart will also research, design, and manufacture electric engines, electronic parts, and batteries for electric vehicles to increase the localization ratio of its products.
The firm will also push research on devices for smart cities and smart homes.
“The production of smartphones or smart TVs no longer brings breakthroughs and creates unique values for users,” said Nguyen Viet Quang, vice-president and CEO of Vingroup.
Meanwhile, developing smart cars, smart homes, and smart cities will bring many “outstanding” benefits to humanity; therefore, the company wants to devote all its resources toward this sphere, he added.
VinSmart will continue to produce smartphones and TVs to complete the products’ lifecycle.
Later, a part of the VinSmart facilities will be used to manufacture products for partners and the remainder will be expanded to make the firm's own new products.
VinSmart also commits to maintain the warranty, repair, and care schemes for customers who have purchased its Vsmart phones until they no longer use the devices.
Notably, a part of VinSmart’s phone software design department will continue research to upgrade and update Vsmart phones already launched onto the market, Quang affirmed.
Since its establishment nearly three years ago, VinSmart has introduced 19 smartphone models and five TV models to the market.