Vingroup officially announced on June 12 plans to produce electronic equipment, beginning with the smartphone brand Vsmart.

The VinSmart Company has been established with charter capital of VND3 trillion ($131.4 million) to realize its plans.

“We want to invest strongly in the research and application of new technologies and techniques, to contribute to the presence of Vietnam on the world technological map,” said Mr. Nguyen Viet Quang, Vice President and CEO of Vingroup. “Participating in high-tech and complex sectors such as smartphone manufacturing also confirms Vingroup’s determination to move towards knowledge- and science-based production that contributes to improving productivity in Vietnam.”

VinSmart will operate in two main fields: the production of smart electronics, research, experimentation, and artificial intelligence (AI) applications, automation, and new generation materials.

A factory will be built within the VinFast Industrial Complex at the Dinh Vu - Cat Hai Economic Zone in northern Hai Phong city under international standards.

In terms of technology, Vingroup is working with the world’s leading consulting companies to engage design consultants, seek qualified professionals, and acquire design licenses for smartphone components. At the same time it will also purchase equipment for smartphone production.

Cooperation with leading partners will ensure that the manufacturing process for Vsmart smartphones is equipped with the most advanced technology to optimize efficiency and ensure product quality.

In its second field of endeavor, VinSmart will set up centers for research, experimentation and application of AI, automation, and new generation materials, and will actively study and purchase patents on the organization of experiments in Vietnam, then put these innovations into production.

The giant Vietnamese group also established the VinFast motor vehicle and electric motorbike manufacturing complex last year, with total investment of VND35 trillion ($1.5 billion). The two projects are part of the group’s strategy to expand into industrial sectors.