Vietnam’s Vingroup Says New Phone Plant Can Make 125 Million Units/Yr

Vingroup JSC, Vietnam’s biggest listed firm by market value, said on Monday it has started work on a second smartphone factory with a capacity to produce 125 million units a year.

The new factory in the capital, Hanoi, will vastly increase Vingroup’s current capacity of five million units at its facility in the northern city of Haiphong, the conglomerate said in a statement.

Construction is expected to be completed by early 2020 and the jump in capacity will help the company meet orders from Europe and the United States, Vingroup CEO Nguyen Viet Quang said in the statement.

“After a period of deploying and participating in the smartphone manufacturing industry, our products have been positively received by the market,” Quang said.

“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,” he added.

A company spokesman declined to provide the names of the European and U.S. partners.

Vingroup launched its smartphone brand, Vsmart, in December last year, seeking to win market share from popular brands Samsung and Apple in Vietnam, which has a population of 95 million people.―Reuters