Employees are at work at a Vsmart phone plant in Haiphong City. Another Vsmart phone plant is expected to generate a maximum of 125 million smartphones a year when it is complete in early 2020. (Photo: B. Chi/Tuoi Tre)
The facility, located at the Hoa Lac Hi-tech Park, is capable of producing 125 million Vsmart smartphones a year once running in full force.
VinSmart, the electronics subsidiary of Vingroup, launched its Vsmart smartphone line last year, with production based in Dinh Vu - Cat Hai Economic Zone in the northern city of Hai Phong, which is also home to the conglomerate’s car-making arm Vinfast.
Commenting on the project, Nguyen Viet Quang, vice chairman and general director of Vingroup, stated that Vsmart smartphones have had positive feedback from users since the group’s first foray into the smartphone market.
The new factory in Hanoi will help meet “rising demand from both the domestic and international markets” for Vsmart, according to Nguyen Viet Quang.
Quang said VinSmart has received not only warm reception from domestic consumers for its smartphones, but also outsourcing orders from partners in Europe and the U.S.
The first phase of the project is slated for completion on August 15. The VinSmart plant in Hanoi will span an area of 15.2 hectares and is capable of producing 23 million smartphones a year.
The second phase will be completed in October, generating 34 million smartphones per year, and the maximum capacity of 125 million smartphones can be achieved early next year.
The 125-million-unit-per-year figure is 25 times higher than the current capacity of the VinSmart facility in Hai Phong.
The most modern equipment and advanced technology applications from the U.S., Germany and Japan will be used at the Hanoi facility, through cooperation with major global tech firms such as Qualcomm, Google and ArcSoft, according to Vingroup.
Also, the plant will be equipped with machines using surface-mounted technology and other automatic equipment, meeting global standards in industrial manufacturing and maximizing the use of automation to increase product quality and productivity, while minimizing human errors.
Alongside making Vsmart-branded smartphones, the Vsmart plant will receive orders from other global companies to manufacture cellphones of other brands
In addition, the group has received many phone processing orders from its Western partners, prompting it to invest in the plant project with an expected annual output 25 times higher than that of its current Vinsmart phone plant in Haiphong City, aiming to satisfy domestic and international demand, said the group vice chairman.
Aside from smartphone products, the group plans to invest in plants manufacturing smart electronic products applying Internet of Things technology such as the SmartHome and SmartTV. It will establish collaborations with both local and foreign chipset and accessories distributors to proactively ensure the supply of input materials for and product quality at its plants.
