The plant is designed to have a production capacity of three to four million smart electronic devices per year, which would be supplied for both the domestic and foreign markets.
Vingroup, Vietnam’s largest privately-run conglomerate, signed an agreement with the Hoa Lac Hi-tech Park Management Board to build a plant worth VND1.2 trillion (US$51.3 million) specialized in producing smart electronic devices, VnExpress reported.
Covering an area of five hectares, the plant is designed to churn out three to four million smart electronic devices per year for domestic consumption and export.
The plant is expected to become operational in the second quarter of 2019, which is part of a broad strategic cooperation between Vingroup and Hoa Lac Hi-tech Park in the 2018 – 2020 period, with vision to 2025.
In the coming time, Vingroup would focus on investment projects in the fields of hi-tech R&D, software and hi-tech industry, housing development, trade and services in the Hoa Lac Hi-tech Park on the outskirts of Hanoi.
Nguyen Viet Quang, vice president and CEO of Vingroup, said the cooperation is in line with the group’s strategy of becoming a conglomerate in the next ten years with three core business lines consisting of technology, industry and trade-service, with a focus on technology.
According to Quang, smart phone would be the first product of Vingroup’s plant.
At the meeting, Minister of Science and Technology Chu Ngoc Anh said that Vingroup, with its hi-tech made-in-Vietnam and made-by-Vietnam products, would contribute to the development of Vietnam’s science and technology foundation.
Anh expected the Hoa Lac Hi-tech Park would soon become a smart city.
In the group’s annoucement on November 21, its board of director approved the decision to establish four subsidiaries with charter capital of VND390 billion (US$16.7 million). Three out of the four subsidiaries in subject operates in fields of cyber security, IT services and software development, of which Vingroup owns 100% of charter capital.
Hoa Lac Hi-tech Part currently has 87 projects with registered capital of VND78 trillion (US$3.34 billion). In 2018, the park has 10 new projects worth a combined of VND15.85 trillion (US$678.62 million).
In July, Vinsmart, a subsidiary of Vingroup, and Spain-based technology company BQ signed a strategic partnership agreement, aiming for accelerating the production of Vsmart-branded smartphones in accordance with international standards.
Under the agreement, VinSmart will acquire intellectual property rights from BQ to develop two models of smartphone for the high-end and mid-range segments under the Vsmart brand, in turn making locally-made smartphones with future-oriented design and European-standard.